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Supporting Renewable Fuels Programs Best for Boosting Rural Economy

WASHINGTON, D.C. – In a hearing on USDA Rural Development Programs and their Economic Impact Across America before the Senate Agriculture Subcommittee on Rural Development and Energy, Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw today testified that properly supporting renewable fuels programs are vital to the well-being of rural America.

“I think it can be fairly stated that no other effort to improve rural economies made the impact that renewable fuels did,” Shaw testified.  “Then, in late 2013, the Obama Administration proposed Renewable Fuel Standard levels far below statutory levels.  The economic fallout was predictable and painful. The last two years have seen a dramatic downturn in the health of rural America.  Corn prices plummeted, land values fell, farm income plunged, and agribusinesses laid off workers by the thousands.”

Shaw then noted that several Energy Title programs under the Farm Bill, including the Bioenergy Program for Advanced Biofuels, the Renewable Energy for America Program and others, have provided a massive return on investment. “However, the effectiveness of these programs is reduced by a lack of consistent and timely funding.”

Shaw also asked the Senate leaders to support other programs outside the Farm Bill that can boost rural economies. “The Renewable Fuel Standard, the USDA’s Biofuels Infrastructure Partnership, and equalizing vapor pressure treatment for E10 and E15 are all additional programs you can support that are vital to the well-being of rural America.”

To view the full written testimony submitted for the record, please click here.

Iowa is the nation’s leader in renewable fuels production.  Iowa has 43 ethanol refineries capable of producing 4 billion gallons annually, including nearly 55 million gallons of annual cellulosic ethanol production capacity.  In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry.  The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

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For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org