(Washington) -- Iowa Congresswoman Cindy Axne is among those expressing concerns over the future of the biofuels industry during the coronavirus pandemic.
Axne recently joined bipartisan colleagues in the House Biofuels Caucus in urging USDA Secretary Sonny Perdue to use funds appropriated in the recently-approved CARES Act to assist biofuels producers with direct relief. Speaking on KMA's "Morning Line" program Wednesday morning, Axne says the COVID-19 pandemic, combined with other factors, has been destructive to the industry and the ag economy, in general.
"We've been struggling to survive on the thinnest of margins over the last few years with the trade wars, and the SRE waivers from the EPA," said Axne. "We've got a real situation here where we've got to protect our biofuels, and our ethanol plants."
Axne says $14 billion dollars is included in the CARES Act for the Commodity Credit Corporation plus $9.5 billion for certain commodities and livestock producers.
"We had fought to secure funding through the CARES Act and the CC," she said. "That would allow the USDA to support our ag industry. In particular, we're asking them to provide direct relief to our ethanol plants. We have plants on the verge of shutting down, so this is really important."
Axne says the decline in traveling and gas sales during the coronavirus has hit ethanol producers hard.
"Obviously, we're not traveling as much, so there's been a reduced gasoline demand," said Axne. "That's been nationwide. Numerous ethanol plants have had to scale back their production, or actually idle because of that. That includes one at the edge of our district, in Coon Rapids. So, what's happening is, folks aren't driving as much. There's not as much demand for oil--that's one thing. So, we're not seeing as much demand for ethanol as a result of that."
In addition, the West Des Moines Democrat says farmers supplying corn to biofuels' plants, and the nation's food distribution system, are feeling the pain, as well.
"We supply DDG to farmers, for feed for their animals," she said. "Right now, we've got some food supply problems that could impact that, as well. So, there's just a lot of things that are impacting agriculture right now, including those two issues. We've got to make sure we can stay on top of it, so that we can come out of it, and not shut down our ethanol plants."
Northern Missouri Congressman Sam Graves and Nebraska Congressman Jeff Fortenberry also signed the letter sent to Perdue. A copy of that letter is attached here:
