Farm Progress America, June 20, 2024

Mike Pearson takes a look at a strategic new partnership has formed between the oil and ethanol producers to put more biofuels in gas tanks.

June 20, 2024

Mike Pearson talks about how the disagreement about ethanol between oil and agriculture producers is changing. One of the major reasons is that half of all vehicles sales are to be electric within a decade.

Now, both groups realize they share common ground.

Many states sell E10 or gasoline with 10 percent ethanol.

Then there are seven states that require ethanol to be blended into gasoline in order to cut down on carbon footprints and as part of the Clean Air Act.

However, higher ethanol blends are a little trickier to come by even though they are better for the environment. The higher blends are not always available without legal waivers and even then they are only available for production during the summer months.

The Biden presidency has pushed the waivers for higher blends through the legislature since 2022.

However, there is no certainty in producing higher ethanol blends-- so the only way is to get the law changed.

It's the first time in 20 years, both agriculture and oil producers are coming together for a common cause like the production of ethanol.

Oil producers and farms are working together for the goal of a law that would produce E15 or gasoline blended with 15 percent ethanol all year long instead of just in the summer.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.

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