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Economist: Farmers, biofuel producers, fuel retailers still seek E15 certainty

An economist with the University of Missouri says the Trump administration’s waiver allowing sales of E15 fuel blends this summer isn’t a long-term solution.

“Monday’s announcement of year-round E15 follows a similar pattern from the last couple years,” Ben Brown said.

Brown says biofuel producers and fuel retailers have been frustrated with a lack of permanent policy.

“That seems to be the argument,” he said. “Quite a few businesses and companies aren’t willing to make the investment.”

He tells Brownfield a timeline for a federal fix is unknown which creates uncertainty in the market.

“What’s unique about this is there was the proposal to just go ahead and allow E15 year-round and not have to provide these waivers,” Brown said. “And then some governors were able to basically hold it up in court.”

U.S. Senator Chuck Grassley recently said work on a federal E15 solution could get pushed back as Congress focuses on tax policy and a new five-year farm bill.

Brown made his comments during Brownfield’s Weekly Commodity Market Update, which can be viewed below.