Cooper: Trump Policies Can Re-Ignite Ag

NASHVILLE, Tenn. (DTN) -- The Trump administration has an opportunity through biofuels and trade policy to avert a farm crisis, the head of the Renewable Fuels Association (RFA) said during an address at the National Ethanol Conference in Nashville on Tuesday, as the farm economy continues on a downturn.

There is economic strain in agriculture, including the likelihood that many farmers expect to see negative returns in 2025. Input costs, including fertilizer and seed, have continued to remain high; land values are falling; and farm equipment sales have fallen for 18 consecutive months.

RFA President and CEO Geoff Cooper told an audience of ethanol producers there are good signs of where the second Trump administration stands on ethanol and other biofuels, but the industry continues to wait for action.

Trump has put biofuels at the forefront of national energy policy in executive orders during the first month of the new administration.

Cooper said the RFA remains optimistic in 2025 about the prospects for the ethanol industry and its ability to help improve the farm economy.

Newly introduced legislation to secure year-round access to E15, he said, offers hope for continued growth.

However, Cooper said the industry's continued success depends on the actions of the new administration.

The Trump EPA is behind the eight ball when it comes to setting Renewable Fuel Standard volumes for 2026 and beyond, as the Biden administration missed the November 2024 deadline to finalize volumes.

"To truly stimulate demand and reinvigorate agriculture, the RVOs for 2026 need to grow beyond the 2025 levels for each category of renewable fuel," Cooper said.

"EPA should also continue the practice of issuing RVOs for multiple years all at once to provide more certainty for all supply chain participants. Exactly where the future RFS volumes for each category should be set is currently the subject of much conversation and analysis within the industry."

Cooper said if the industry is to be successful in conveying the importance of growth-oriented RFS volumes, "stakeholders representing agriculture, ethanol, biodiesel, petroleum and retail will need to be as aligned as possible in our advocacy efforts."

Also, among the most pressing priorities are revisiting tailpipe emissions standards that "force production" of electric vehicles, he said, and bringing more certainty and stability to biofuel tax credits and trade policies.

"By strengthening policies that support renewable fuels, we not only enhance energy security but also strengthen the rural communities that are the backbone of America's economy," Cooper said.

"Two decades ago, the RFS created a thriving market for renewable fuels, pulling family farmers from the brink of economic collapse and sparking the most prosperous era in American agriculture. As farmers now face new financial challenges, it is more critical than ever that we turn to ethanol once again to secure rural America's future and our nation's energy security. We've seen it work before and with the right policies in place, it can work again."

This week's event marks the 30th annual National Ethanol Conference, as well as the 20th anniversary of the first RFS.

Cooper said just as the RFS sparked an economic boom in rural America in 2005, it can play a role in reigniting the agriculture industry.

"From the early days of 'gasohol' during the Carter administration to the transformative passage of the Renewable Fuel Standard (RFS) in 2005, the ethanol industry has evolved into a cornerstone of both U.S. energy security and agricultural prosperity," Cooper said.

"The success of ethanol, driven by the RFS, has had a profound impact on American consumers and farmers alike, helping lower pump prices, enhance energy independence, and bolster rural communities."

In addition, Cooper said there continues to be concern about what the new U.S. Environmental Protection Agency will do when it comes to small-refinery exemptions (SRE) to the RFS.

The new Trump EPA has 139 pending SRE requests, he said, representing between 5.5 billion and 6 billion gallons of renewable fuel demand. The first Trump administration handed out more than 80 SREs.

"Moving forward, we strongly believe EPA should continue the judicious and careful approach that it has taken to SRE petitions over the past four years," he said.

"But if any petitions are granted, the exempted volumes should be restored and redistributed to ensure finalized RVOs are kept whole. Fortunately, near the end of the first Trump term, EPA adopted an approach to setting RVOs that would require the reallocation of any exempted volume obligations. If any SREs are granted, we hope the new Trump EPA follows this approach."

Todd Neeley can be reached at todd.neeley@dtn.com

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