If recent reports about the Trump administration considering sending biofuel program reform efforts back to the legislative branch turn out to be true, don’t expect ethanol supporters to be too disappointed.
Biofuel producers find themselves in a discomforting, but all-too-familiar, situation again this year. Valuable tax incentives have been allowed to expire once again, and Republican tax writers are openly questioning whether those and other lapsed tax breaks should be allowed to die.
Congress faces a Friday deadline to pass a $1.3 trillion government-wide spending plan and companies that buy commodities from farmers hope it will include a fix to the Section 199A tax deduction that has rattled the industry.
Rumors of potential action in the price of biofuel credits have Midwest politicians on edge, including a group of senators that have requested a meeting with President Donald Trump to discuss the issue.
After making some comments suggesting he wasn’t happy with Ag Secretary Sonny Perdue’s approach to biofuels policy, Iowa Sen. Chuck Grassley now says he was “perhaps a little bit too strong” in some of his criticism.
House Agriculture Chairman Mike Conaway looks to quell a Democratic revolt over his draft farm bill, just a week before his panel’s planned votes on it, while ethanol producers step up their efforts to head off a cap sought by refiners on the prices of biofuel credits.