Why It Matters
A new analysis commissioned by a major American farm group projects substantial gains in agricultural output and consumer fuel savings if biofuel demand expands — findings that Midwest senators are now using to push year-round access to higher-ethanol fuel blends.
What Happened
A Capitol Hill briefing held Tuesday in Washington, D.C., brought together senators from both parties to review a study published by S&P Global on the economic and agricultural impact of biofuel expansion. The analysis was commissioned by the U.S. Farmers and Ranchers Association, and its findings were presented by Kevin Lindemer, an S&P Global executive.
Sen. Chuck Grassley, an Iowa Republican, and Sen. Tina Smith, a Minnesota Democrat, were among those in attendance — a rare show of bipartisan alignment on an energy and agriculture policy question that touches both rural economies and national food security.
Grassley used the occasion to renew his push for legislation making E15 — a blend of 15 percent ethanol and gasoline — available for sale throughout the year. Under current Environmental Protection Agency rules, retailers are barred from selling E15 during a summer window running from June 1 through September 15, a restriction tied to air quality concerns. The House voted in May to eliminate that seasonal limitation, though the Senate has yet to take up the measure.
By the Numbers
The S&P Global study projects that biofuel demand could serve as a significant driver of agricultural growth. Key figures from the analysis include:
- A 48 percent projected increase in U.S. corn yields attributable to biofuels acting as a market catalyst
- A projected addition of 1.4 billion bushels to U.S. soybean production
- A 45 percent projected boost to the global food supply
- Potential pump savings of 20 to 40 cents per gallon for consumers if E15 became available year-round, according to Grassley
- At least 28 senators represent grain-growing states, spanning at least 14 states, Grassley noted — a bloc he views as a built-in coalition for biofuel-friendly legislation
What Senators Said
Grassley, who holds town halls in all 99 Iowa counties each year, argued that the study reinforces arguments he has been making to constituents for years. “The report backs up what I’ve been saying for years,” he said. “Biofuels are good for the rural economy, good for national security, good for the environment and good for American pocketbooks.”
Lindemer framed biofuel market development as an active strategic choice rather than a default outcome. He argued that agricultural industries facing excess capacity typically scale back, but that expanding into new markets — as biofuels represent — offers a more constructive path forward.
Zoom Out
The push for expanded E15 access is part of a longer-running debate over how federal fuel-blending and air-quality rules shape demand for domestic corn and soybean production. Ethanol producers and farm groups have argued for years that the summer E15 restriction artificially suppresses a market that benefits American growers. Opponents have pointed to EPA findings that higher-ethanol blends in warm weather can contribute to ground-level ozone formation in some regions.
The study’s framing of biofuels as a national security asset also echoes a broader trend in energy policy discussions, where domestic agricultural fuel production is increasingly cited alongside oil-and-gas independence as a pillar of reducing dependence on foreign energy sources.
What’s Next
The immediate legislative question is whether the Senate will take up the House-passed measure to lift the EPA’s summer E15 restriction. Grassley’s math — 28 senators from grain-producing states — suggests a potential majority exists if members vote their regional economic interests. However, the Senate calendar and competing legislative priorities leave the timeline uncertain. The EPA restriction itself remains in force for the current summer selling season regardless of congressional action.