Letter to Sonny Perdue, Secretary of the Dept. of Agriculture - Grassley, Duckworth, Ernst Call on USDA to Allocate Additional Funds to Biofuel Industry Negatively Impacted by COVID-19

Letter

Dear Secretary Perdue,

We are concerned about our nation's biofuel sector during the unprecedented economic
circumstances brought on by the national pandemic of COVID-19.
As the country follows the advice of local and state governments and remain at home, motor fuel
use has rapidly decreased. This dynamic comes on top of EPA's failure to implement the RFS in
accordance with the law, including the issuance of illegal small refinery waivers and the recent
failure to enforce ethanol blending requirements. As the consumption of motor fuel continues to
decrease in response to COVID-19, it is important to note that most U.S. gasoline contains at
least 10 percent ethanol.
We are concerned for the many farmers and producers who will bear the impact of this decrease
in consumption, further damaging an already hurting rural economy and resulting in the closing
of production facilities that employ many people in rural communities in our home states.
As the U.S. Department of Agriculture (USDA) considers the allocation of additional funds
provided to the Commodity Credit Corporation (CCC) by the Coronavirus Aid, Relief, and
Economic Stabilization (CARES) Act we ask that you use the authority provided to assist the
biofuel industry.
The decrease in fuel consumption has left production facilities little choice but to idle production
or close completely. Since March 1, industry sources show more than four billion gallons of
ethanol production has ceased production. The CCC was created to stabilize, support, and protect
farm income and prices while also maintaining balanced and adequate supplies of agricultural
commodities and aids in their orderly distribution.
Farm income and prices for corn and other crop commodities are directly linked to the health of
the renewable fuel industry. Ethanol plants use 40 percent of all corn grown in the United States.
Among other feedstocks, biodiesel and renewable diesel producers currently use over 8 billion
pounds of soybean oil a year, creating demand that adds 13 percent to the cash price of a bushel
of soybeans. We have seen a significant drop in the price of corn and soybeans because of the
decline in demand. Keeping plants open is vital for our states and we ask that you use the
authority given by Congress to assist the biofuel industry during extremely difficult times. We
are supportive of the proposals the biofuel industry has put forward to reimburse feedstocks and
also believe that adding additional CCC funds to the Higher-Blends Infrastructure Incentive
Program will drive future biofuel demand.
Thank you for considering our request and for your dedication to rural America. We look
forward to working with you on deploying the additional resources that Congress gave you in
the CARES Act.
Sincerely,