Ethanol Issue Is Important to Kansas Economy

Gov. Colyer Supports Ethanol in RFS Letter to White House

3/15/18–The Kansas Corn Growers Association thanked Kansas Governor Jeff Colyer who joined several Midwest governors today in a letter to President Trump thanking him for his support of the Renewable Fuels Standard (RFS) and urging the Administration to “reject proposals designed to weaken – or waive – this key pillar of the farm economy, including Senator Ted Cruz’s waiver credit proposal, or “RIN cap.”

At issue is the proposed cap on RINs (Renewable Identification Numbers) that are used to show fuel blenders’ compliance with the RFS, the law that provides market access to ethanol producers. The RINs are traded between fuel blenders who blend ethanol and those who do not blend enough ethanol to be in compliance with the RFS.

The letter states: “At the core of this debate is Senator Ted Cruz’s RFS waiver credit proposal, or “RIN cap,” which would allow refiners to skirt their RFS obligations, slashing demand for biofuels. Simply put, for every waiver credit issued by the EPA under the Cruz plan, the 15 billion-gallon RFS level would be reduced by one gallon.

According to multiple studies by Midwest universities, that demand destruction for biofuels would exceed one billion gallons.”

An Iowa State University study estimated that a RIN cap could lower the price of corn by 25 cents per bushel.

“Governor Colyer understands the positive impact agriculture and ethanol have on the state’s economy. Our ag economy is already struggling. Corn farmers can’t afford to lose 25 cents per bushel on their corn. The economic activity driven by crop and ethanol production is vital to our state’s economic health,” Kansas Corn CEO Greg Krissek said.

Several Kansas Corn members participated in Saturday’s listening session with First District Congressman Roger Marshall.

“We appreciate the efforts of Congressman Marshall who has been actively involved in the issue and held a listening session last weekend at the Kansas Ethanol plant at Lyons.”

Representing Kansas Corn Growers Association at the meeting were Dennis McNinch, Utica; Matt Splitter, Lyons and Geoff Burgess, Sterling. Congressman Marshall is a member of the Congressional Biofuels Caucus.

“We are lucky to have Congressman Marshall taking a strong leadership role on this issue,” McNinch said. “Corn farmers and the ethanol industry play a big part in our state’s economy. Congressman Marshall understands this is not the time to roll back the market access that the RFS provides for ethanol.”

The Kansas Corn Growers Association represents its members in legislative and regulatory issues, and promotes efforts that build markets for corn.


To view a copy of the letter, click here.