(Des Moines) — The Environmental Protection Agency has announced it plans to delay any announcement regarding the Renewable Fuels Standard. That has ethanol industry officials and critics alike believing it is both good news, as well as bad news. KLEM radio visited with Iowa Secretary of Agriculture Bill Northey about the EPA’s decision to wait on the Renewable Fuels Standard.
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Northey says investments into the renewable fuels industry have slowed down, due to the indecision of the Environmental Protection Agency.
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Some advocates of the ethanol industry would like to see an expansion of the corn-based fuel to a level of 15 percent, or E-15. Northey says it would help reduce the surplus of corn, and help farmers receive higher prices for their corn. But he admits, it may take some strong leveraging by farmers and the ethanol industry to have E-15 widely accepted.
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Iowa Soybean Association president and Cleghorn farmer, Tom Oswald says “A delay is better than making an ill-advised decision. However, kicking the can down the road couldn’t come at a worse time for Iowa’s soybean farmers given record production and tightening margins. Inaction in Washington, D.C., has negative consequences for biodiesel producers and farmers across the state.
“The EPA’s decision creates more uncertainty in the biodiesel industry, which discourages investment and expansion. Biodiesel production in Iowa, the nation’s leader, is down as a result. That costs jobs and hurts the state’s economy.
“Soybean oil is a primary feed stock in biodiesel, and limiting markets has curtailed prices at a time when margins are already razor thin or nonexistent.”
