Trump to consider RFS review options as US corn industry responds

President Donald Trump is set to review a list of options to revamp the Renewable Fuel Standard, Reuters reports Monday, as the latest round of the agriculture versus oil tussle gets underway in Washington DC.

Two key US government departments – the USDA and the EPA – have been tasked with drawing up a list of potential changes for discussion, according to the report, with their findings due to be discussed in cabinet today.

The RFS is the key legislation that underpins the US biofuel policy, mandating the use of petrol with a 10% ethanol content, or E10, as well as laying out blending expectations for biodiesel and advanced biofuels.

Some 5.575 billion bushels of US corn are expected to be consumed in the 2017/18 marketing year in order to produce ethanol – approximately 40% of the country’s total corn production.

Neither the USDA or the EPA responded to a request for comment from Agricensus, but market sources expect a cap on RINS prices to be one of the considerations under discussion along with the green light to allow a higher ethanol mix to be sold all year round.

Capping RINS prices – a certificate that accompanies every gallon of biofuel produced and is key in allowing obligated parties to prove compliance with the overall mandate – may slash the incentive to blend biofuels, according to some critics.

Supporters of the RFS have taken to social media to mount their defence of the program, which comes at a time when US farmers face uncertainty over the country’s trade relationship with China.