North Dakota farm group: Year-round E15 could aid agriculture

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(Prairie News Service)
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As Congress considers a White House-backed measure to allow year-round sales of gasoline containing higher volumes of ethanol, advocates for farmers and ranchers in North Dakota said the move could help address critical challenges facing the agricultural industry.

Sales of the 15% ethanol blend known as E15 have been restricted during the summer because of how it contributes to smog.

Matt Perdue, president of the North Dakota Farmers Union, said E15 is crucial to building domestic demand and addressing low commodity prices and market uncertainty.

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“The Senate needs to find a path forward on year-round E15,” Perdue urged. “This has been at the 1-yard line now for several years. It’s time to get it across the finish line.”

Farm groups are frustrated the issue was not included in the Senate’s Farm Bill draft but last week, the White House asked Congress to pass a separate law to make year-round E15 legal.

It is the latest attempt to curb gasoline prices, which have spiked since the war in Iran started. U.S. refiners oppose the move, saying it could raise costs and complicate fuel distribution. Supporters argued the higher-ethanol blend gives drivers cheaper alternatives to conventional gasoline.

Perdue pointed out updates to farm loan programs in the Senate farm bill draft will help address the record-high debt loads farmers and ranchers are carrying. But with fertilizer prices also skyrocketing this year, he stressed strengthening market competition and transparency are critical.

“Long term, there are opportunities to figure out whether or not the safety net that we have today is really built for a lot of the volatility and uncertainty that we’ve experienced over the last several years, and that we anticipate experiencing into the future,” Perdue explained.

Perdue added changes made in the reconciliation package passed last summer targeted low commodity prices but he argued more aggressive action is needed to tackle input cost challenges for ranchers and farmers.

The Senate is expected to start markups to the farm bill draft after the Fourth of July recess.