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Biofuels better off compared to original RFS cuts

An ag economist says the ag and biofuels sector has made enormous progress with the latest Renewable Fuel Standards even with cuts to ethanol mandates.

Scott Irwin with the University of Illinois tells Brownfield if the original RFS cuts from 2013 would remain in effect, there would have been a greater impact to ethanol production.  “My projections would be that that would in total have involved 17 billion gallons of cuts in total between 2014 and 2022.”

Irwin says the latest ruling is coming closer to breaching the E10 blend wall.  “The EPA is highly likely to return the ethanol mandate for 2017 to the statutory level or very close to it in 2017, which would be 15 billion gallons.”

He tells Brownfield if his projections are correct, the 2015 rules will cut ethanol production by less than 2 billion gallons and will only last for three years. He says that’s a major victory for ag and biofuels.

Irwin says biodiesel and soybean oil will be real beneficiaries with the current 2015 rules.

AUDIO: Interview with Scott Irwin