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Kansas Corn Farmers, Consumers to Benefit from New Tax Credit Expanding Ethanol Availability

April 28, 2026–Kansas corn growers applauded a new ethanol tax credit passed by the Kansas Legislature and signed into law Monday that will support Kansas fuel retailers that offer higher ethanol blends, creating benefits for both farmers and consumers. The tax credit provides an incentive for fuel retailers to expand access to higher ethanol blends—fuel options that are lower priced and higher in octane for motorists. Fuel retailers can claim a Kansas tax credit of five cents per gallon on higher ethanol blends sold from 2026 through 2028.

 

The Kansas Corn Growers Association (KCGA) played a key role in advancing the legislation. KCGA Vice President Brett Grauerholz, Republic, testified in support of the bill during the legislative session, emphasizing the importance of expanding access to higher ethanol blends across the state.

 

“We saw record corn production in both Kansas and the U.S. in 2025, and our top goal is to build market demand for our crop,” Grauerholz said. “This bill will help corn farmers by increasing demand for ethanol, produced primarily from corn at 11 plants in rural Kansas communities.”

 

E15 and higher ethanol blends are already available at more than 150 stations across Kansas, giving drivers access to the lower-cost, higher-octane fuel.

 

“It’s a win-win-win,” Grauerholz said. “Consumers save on fuel, farmers gain stronger markets for their corn, and fuel retailers can offer more choices and value to their customers. Retailers already offering higher ethanol blends are seeing strong interest from customers who recognize the benefits of a higher-quality fuel at a lower price.”

 

The Kansas Corn Commission will continue its work to expand infrastructure for higher ethanol blends statewide. With the addition of this new state program, the commission can help fuel retailers access both state and federal funding to further increase availability.

The Kansas Corn Growers Association represents its members in legislative and regulatory efforts. The Kansas Corn Commission invests the one-cent-per-bushel corn checkoff to benefit Kansas corn farmers in the areas of market development, research, education and promotion.

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