Farmers Fear Another Hit as Trump Shutdown Threatens Ethanol Vow

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January 04, 2019

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by Mario Parker and Jennifer A Dlouhy (Bloomberg) Year-round 15% ethanol-gas blend by summer now seen at risk; Shutdown could join trade war in limiting farmer income -- ... The government shutdown that Trump says could last "a long time" without funding for a border wall may hurt farmers by delaying the administration’s ability to steer through the approval for year-round sales of a 15 percent ethanol blend for gasoline before the summer begins. That’s up from 10 percent allowed now.

The increased sales would certainly be helpful. Farm income has dropped in five out of the last six years. And this season, growers have been been hamstrung in selling their crops by an ongoing trade war with China.

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The Environmental Protection Agency had promised to present a final rule in May, just four weeks before existing restrictions on 15 percent ethanol become binding. Now, though, the agency is largely inoperative.

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Ethanol could use a boost. Like soybeans and pork, it’s faced steep tariffs from Beijing in the tit-for-tat trade war between the U.S. and China.

Companies including Green Plains Inc. and Pacific Ethanol Inc. have shed jobs and curtailed production.

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The partial U.S. government shutdown is also raising questions about delays for the second-round of payments under the market facilitation program that the Trump administration initiated to help farmers hurt by the trade war. READ MORE

As loans and aid dry up, U.S. farmers face fresh challenge from shutdown (Reuters)

E15 Schedule Tight Despite EPA Shutdown (DTN The Progressive Farmer)

Ethanol industry confident in E15 timeline despite shutdown (Ethanol Producer Magazine)

Shutdown risks delays to U.S. drilling, ethanol, wind initiatives (Reuters)

Trade and Tariffs Dominate 2018 in Rural America (IPTV includes VIDEO)

China gives long-awaited approval of some genetically modified crops amid U.S. trade talks (Globe and Mail/Reutes)

Already reeling from tariff war, some farmers aren’t receiving government support checks amid shutdown (Washington Post)

U.S. gives farmers more time to apply for aid due to government shutdown (Reuters)

Farmers Are Playing the Long Game With Trump, Even as Woes Build Up (Bloomberg)

Trump promotes his trade policies to farmers after AF1 delay (Associated Press/ABC 3340)

TRUMP TO ADDRESS FARM BUREAU CONVENTION (Rural Radio Network/American Farm Bureau Federation)

Farm Country Stood by Trump. But the Shutdown Is Pushing It to Breaking Point. (New York Times)

Excerpt from DTN The Progressive Farmer: (Paul) Argyropoulos said making sure all the legal ducks are in a row doesn't come easy.

"This is not a new issue; however, getting the legal and technical language and positions aligned is not an easy task," he said. "The agency staff is very experienced and is used to working under very tight timeframes. Certainly, an extended shutdown has the possibility to impact this already very difficult schedule."

And the thought that EPA already has completed much of the work on E15 may not be true, Argyropoulos said.

"Many of the staff working on this package are the same that work on the RVO (Renewable Volume Obligations) package," he said. "Given that was only released at the end of November, that means they've only had a month to shift their efforts over to this rule. Hard to know exactly where things are in the process right now." READ MORE