This week has brought about an issue of highest concern for corn growers. USDA Secretary Sonny Perdue and EPA Administrator Scott Pruitt met with President Trump Monday (Feb. 26) to discuss possible changes to the federal Renewable Fuel Standard (RFS). The following day, the president met with Sens. Chuck Grassley (R-IA), Joni Ernst (R-IA), Ted Cruz (R-TX) and Pat Toomey (R-PA). Afterward,  Sen. Grassley tweeted there was no deal on RFS changes.
 
Sen. Cruz claimed the administration was "close" to accepting the oil industry's changes that would reduce demand for ethanol, reduce demand for corn and seriously wound the fragile rural economy. Cruz is using a poorly managed refinery in Pennsylvania as a scapegoat to cap the market mechanism (RINs) included in the RFS. Any cap or other manipulation would disrupt that mechanism and diminish the incentive to blend corn-based ethanol. If the economics aren't there, volume targets will not be met.
 
Your KyCorn board and staff are diligently working with the National Corn Growers Association, other state corn organizations and industry leaders to address this serious situation. 
  • NCGA, along with ASA, AFBF and other commodity organization partners, sent a letter to the President outlining our concerns. 
  • NCGA leadership met privately with Secretary Perdue before he addressed the General Session of Commodity Classic on Wednesday this week.
  • Today all the Presidents and CEOs of the commodity associations partnering to host Commodity Classic discussed further with the Secretary at breakfast about how manipulating the market for RINs with a price cap would dismantle the RFS.
  • We are using Facebook, Twitter and all available communication channels to convey our message to the administration. Please share our posts and include a personal comment.
    • President @RealDonaldTrump - Let the RIN market work because the #RFSWorks for my family and our country.
    • President @RealDonaldTrump - Remove blending barriers to lower RIN prices and allow the #RFSWorks
  • We have been monitoring the situation around the White House meetings that occurred earlier in the week and today. NCGA has been in regular contact with Senators Grassley and Ernst who attended these meetings.
The KyCorn delegation was there yesterday when Perdue spoke at Commodity Classic in Anaheim. The secretary was insistent both he and the president adamantly oppose any RFS changes. While he unequivocally supports the RFS, Perdue also said he does not understand how RINs impact the RFS.
 
Ethanol production uses 30 percent of the U.S. corn crop. With farm incomes at a 12-year low, now is not the time to be backing away from critical value-added markets. It is a serious situation. We need all markets, which means we need the RFS to stand as written. We are engaging in every manner possible - and hope you will too. Stay tuned and get informed!  Action alerts on this issue will be coming.  
 
Laura Knoth
KyCorn Executive Director