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Ethanol industry remains important for energy independence

Mar 31, 2022, 10:54 AM by Kathleen M. Dutro, INFB Marketing Team

 

Ethanol has increased demand for corn, decreased the U.S.’s dependence on foreign oil and reduced greenhouse gas emissions. And during these times of high petroleum prices, higher blends of ethanol at the pump will reduce the cost to consumers.

It is for these reasons that Indiana Farm Bureau has always been a major supporter of ethanol and why it continues to be a staunch and vocal supporter, said INFB President Randy Kron.

“Indiana has 15 ethanol plants, and about 45% of the corn we grow goes into ethanol,” he said. “It’s very important to Indiana agriculture that the ethanol industry remains healthy and growing.”

He added, “Ethanol represents a very important market for our members as well as supporting many jobs in our rural communities. Indiana’s ethanol industry supports over 23,000 well-paying jobs across the state of Indiana,” he said, citing a recent report from Agriculture and BioFuels Consulting, LLP.

While the ethanol market – like so many other markets – has been hit with volatility related to the petroleum markets, there has been some good news, too.

The reduction in greenhouse gas emissions attributed to ethanol and biodiesel use is equivalent to taking 17 million cars off the road for a year, according to the U.S. Environmental Protection Agency. That success comes in part thanks to the Renewable Fuel Standard (RFS), the law that requires ethanol and biodiesel be blended into fuels.

Energy independence is another tangible benefit of ethanol production. In 2020, more than 40% of the oil processed by U.S. refineries came from foreign sources, according to the Renewable Fuels Association. But ethanol is homegrown and renewable.

“It’s good for farmers, for consumers and for the environment,” Kron said.

The American Farm Bureau is asking the Biden administration to remove barriers to domestic energy production including increasing the production of biofuels, which have reduced America’s dependence on foreign crude oil while creating jobs in rural Indiana and rural America.

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