News

ARA Study: gas car ban could devastate US biofuels, agriculture

Proposals to ban internal combustion engine vehicles by 2035 or 2050 could have a devastating impact on US biofuels and agriculture, according to a new survey by the Agricultural Retailers Association.

Richard Gupton is the senior vice president of public policy and counsel with the association.

“The main findings of the study show that with US light-duty and freight vehicle consumption of ethanol could decline up to 90 percent to 1.1 billion gallons and biodiesel could decline up to 61 percent to .8 billion gallons,” he says.

He tells Brownfield the proposed bans would also have a negative impact on corn and soybean consumption and price.

“Corn and soybean consumption could decrease by up to two billion bushels and up to 470 million bushels respectively,” he says. “The bigger impact is that corn prices that could fall up to 50 percent to $1.74 per bushel and soybean prices could fall up to 44 percent to $4.92 per bushel.”   

Gupton says the association wants to ensure that lawmakers are aware the bans would hurt US biofuels, ag, and the economy as they make policy decisions.

Proposals to ban internal combustion engine vehicles by 2035 and 2050 served as the economic models for the study. The Agricultural Retailers Association says proposals that seek to rush the ban to 2035 have the most severe impacts, but any ban would result in dramatic decreases and would be carried disproportionately by the ag community.

The study finds that US net farm income could decrease by up to $27 billion. The study also shows economic losses throughout the biofuels value chain could range from $105 to $185 billion.

Audio: Richard Gupton

Add Comment

Your email address will not be published.


 

stay up to date

Subscribe for our newsletter today and receive relevant news straight to your inbox!