By Rubina Obaid
As biofuel industry is one of the major markets for our farmers to produce their commodities and the pandemic outbreak worsening market and it is imperative to take immediate measures to improve the market conditions and to secure 350,000 jobs.
The unprecedented hit of COVID’19 led countries to undergo constant lockdown and stay at home orders discouraged traveling, due to which demand for fuel declined sharply. This consistent decline worsen the oil market conditions to the extent that ethanol plants have reduced production. Therefore, Biofuels Caucus urged for the support of the biofuel industry and sent a letter to the Agricultural secretary Perdue to use the funding raised from Coronavirus Aid, Relief and Economic Security for the sake of protecting biofuel industry. The letter notes that the legislation provided $14 billion for USDA commodity credit corporations in order to respond for the economic impact due to the Coronavirus outbreak.
As biofuel industry is one of the major markets for our farmers to produce their commodities and the pandemic outbreak worsening market hence, it is imperative to take immediate measures to improve the market condition. USDA must have to take prompt action to help them in retaining skilled workers and the continuity in production would be made accessible anytime. As the biofuel sector is mainly responsible to provide an immediate boost to the value of corns and soybeans and out of every five bushels of US corn ethanol plants use around 8 billion pounds of soybean oil annually and further they produce dried distiller grains (DDG) as the byproduct, that is used for feeding livestock as high protein and low-cost component.
In order to take active part in contributing constructively for responding towards the global medical emergency some ethanol and biofuel plants have volunteered to produce hand sanitizers and disinfectant products to help nation in coping up with the crisis and extending support in fulfilling the nationwide shortage of these products.Biofuel Caucus urged to support biofuel industry. As the biofuel sector plays essential role in employing people from various rural areas, therefore Caucus letter strongly stressed over supporting biofuel industry and called for immediate action in order to provide help in stabilizing biofuel industry with the resources provided by CARES Act. Moreover, Renewable fuel association thanked the House Biofuel Caucus for raising the concern for the sake of improvement of the renewable industry keeping in view that 40 percent of the ethanol industry’s production is shut down.
According to the President and CEO of RFA Geoff Cooper “Nation’s ethanol industry, farmers across the country and the consumers who are dependent on clean fuel and nutritious feed produced through ethanol plants, I want to thank these congressional leaders for their vision and advocacy” There were twenty-nine members of congress who signed the letter and also recognized the importance of ethanol plays in the economic stability of rural America. It is also imperative to support farmers and commodity markets by allowing funds which have recently been allocated to USDA to protect the ethanol industry workforce. As the gasoline demand is also distraught by the global outbreak, while ethanol remains most important industry and house members efforts to be applauded for the protection of 350,000 jobs supported by the ethanol industry. The letter from the House Biofuel causes was also welcomed by the Growth Energy.