Farmers spent 63% more for diesel this year than last, and recent moves in wars have sent diesel futures up 20%

American farmers who planted corn, wheat, soybeans, cotton and rice this year spent 63 percent more on diesel fuel than they did last year, according to a report from the Democratic members of the Joint Economic Committee of Congress.

The study "calculated the increase in overall diesel spending by farmers across the U.S. using diesel price data from the American Automobile Association and the Energy Information Administration, estimates of average fuel use by crop and field operation from U.S. Department of Agriculture and Iowa State University Ag Decision Maker research, and USDA data on 2025 and 2026 acreage and planting windows for corn, soybeans, wheat, rice, and cotton," a news release said.

"When diesel prices were at their peak during the spring 2026 planting season, the average farmer spent $1500 more to refill their farm’s on-site fuel tank . . . compared to the same high point during the 2025 planting season. In addition, farmers spent hundreds more to fill up just one tank of diesel for common tractors and grain trucks compared to last planting season."

The report blames the price increase on the Iran war and the tightening of supplies. The recent increase in hostilities, and Russia's new ban on exports of diesel after Ukrainian attacks on its refineries, have driven diesel futures prices up 20 percent, The Wall Street Journal reports.

Quick hits: No.1 favorite ice cream; ousting rogue drones; big find by NASA's Curiosity Rover; some good news

Farm Journal graphic, from IDFA National Ice Cream & Frozen Novelty Trends Survey

It's dark and rich and back in the top spot. "Chocolate is back at No. 1 among U.S. ice cream flavors, with butter pecan gaining ground and richer options continuing to rise in popularity, according to a new survey," reports Taylor Leach of Farm Journal. "After briefly ceding the No. 1 spot to vanilla in 2024, chocolate has reclaimed the lead in 2026." Michael Dykes, the International Dairy Foods Association president, told Leach, "Americans’ love for ice cream is as strong as ever." 

The Conversation graph, from Energy Information Administration data

After weeks of surging gasoline prices with no end in sight, some Americans might be wondering what all goes into the cost of a gallon of gas. Robert I. Harris, an energy economist, breaks down gas prices for The Conversation. "The price of a retail gallon of gas is the sum of four things: the cost of crude oil, refining, distribution and marketing, and taxes. . . . In nationwide figures from January 2026, crude oil accounted for about 51% of the pump price, refining roughly 20%, distribution and marketing about 11% and taxes about 18%." Harris adds that since crude oil is the biggest component of gasoline, when its price spikes on the global market, gas prices go up. 

Indiana farmers didn't appreciate drones hovering over
their livestock. (Photo by B. Dittrich, Unsplash)

In rural Indiana, some farming families are "leaning on the law" to keep unwanted drones off their lands, reports Greg Weaver of Indiana Capital Chronicle. "Hoosiers in rural Indiana say drones are unlawfully tracking deer for poachers, inexplicably flying around chicken coops, and increasingly making people uneasy." Although many Indiana farmers considered shooting down the snooping drones, they learned that wasn't legal. "So they’ve found other ways to combat the rascals. . . . Farmers fearful that drones might be spreading disease among livestock recently persuaded the Indiana General Assembly to pass a law that prohibits the devices from being used to harm or harass farm animals."

When it comes to serving up energy for hungry grids in rural Virginia, sometimes smaller is better. "The Blue Ridge Power Agency, which serves a string of nonprofit utilities in central and western Virginia, is set to go live this summer with a collection of five batteries of about 5 megawatts each," reports Elizabeth Ouzts of Canary Media. By comparison, larger batteries are typically at least 10 megawatts; however, both sizes aim to store energy when it's less expensive and plentiful. Blue Ridge Power's new batteries will "help two rural electric co-ops and the city of Salem’s utility save money" by releasing battery-stored energy "when high demand on the grid spikes prices." Unlike their larger cousins, smaller batteries are cheaper and faster to build.

NASA's Curiousity Rover spends its time exploring Mars and 
sending information back to Earthlings. (NASA image)

It's hard to be more remote than exploring for signs of life on Mars, which is what the Curiosity Rover spends its time doing. "New research published in Nature Communications details Curiosity’s latest find — never-before-seen organic compounds, including one with a structure similar to DNA precursors," reports Jake Currie for Nautilus. NASA geologist Amy Williams told Nautilus, "The same stuff that rained down on Mars from meteorites is what rained down on Earth, and it probably provided the building blocks for life as we know it on our planet." To send all those compounds back to Earth, Curiosity had to conduct a full orchestra of experiments. The Curiosity also goes by "the little robotic chemist that could."

Suicide deaths among younger Americans dipped by 11% from earlier projections. 
(Graph by Vishal R. Patel, MD,  Michael Liu, MD,  and Anupam B. Jena, MD)

And now, some really good news: "The rate of suicides among young people in the United States dropped 11% below projections, decreasing most sharply in states with a higher volume of answered 988 calls, a new study has found, reports Ellen Barry of The New York Times. The study's results, published in a research letter in The Journal of the American Medical Association (JAMA), found that 4,372 more adolescents and young adults, ages 15 to 34, are alive today than previously projected. The study's data suggests that the federal government’s 988 suicide prevention hotline rollout, which launched in 2022, is having a positive impact among younger Americans.

Reporter tips: Spiking gas prices unify many Americans; the general misery offers a multitude of story possibilities

Gas prices in Holden, Maine, after Russia invaded 
Ukraine in early 2022. (Photo by GG, Unsplash) 

Dismayed by soaring gasoline prices, many Americans are coping by sharing their frustration and misery. For journalists, the increase in gas prices combined with eventual transportation-cost price hikes on consumer and grocery goods is an opportunity to explore energy resources, shared financial stresses and the effects of the war in Iran.

"Whatever you think of the war in the Middle East, people’s patriotism is being eclipsed by anxiety over fuel prices," reports Joseph A. Davis for the Society of Environmental Journalists. "That means the whole crisis is an opportunity to report on the environmental implications of burning petroleum. . . . It makes a big difference in people’s lives.”

For the most part, lamenting over eye-popping fuel prices -- and what some Americans are doing to cope -- isn't a partisan conversation. Community reporting can bring those stories to light. Davis writes, "People who live in rural and western areas may have to drive long distances daily. Many commercial truck drivers are independent entrepreneurs who pay for fuel out of their own pockets." 

Local reporting can remind readers about more recent gasoline price spikes and share some history on how older generations weathered previous gas crunches and steep inflation. In the spring of 2022, Russia's invasion of Ukraine caused gas prices to spike to levels similar to today's prices. Davis adds, "In July 2008, crude prices peaked at over $150/barrel, higher than even today, due to several factors, including Mideast tensions. They had previously peaked in late 1973 in response to a Mideast war and the Arab oil embargo."

At some point, there will likely be an opportunity to report on energy resources and the future of energy in your community, region or the nation. 

Davis' story ideas and reporting resources are shared below.

• If you are in a rural area, visit feed and fertilizer stores, and ask farmers how fuel prices affect them. Ask about fertilizer prices, too.
• Go to local car dealers (ideally ones that sell both gas vehicles and EVs). Talk to customers, salespeople and managers about whether interest in EVs is going up.
• If you live in a region, such as the Northeast or Alaska, where people still use fuel oil for heating, talk to customers and suppliers about how people are responding to higher fuel prices.
• Most states use fuel taxes to fund transportation infrastructure. Talk to your state legislators about any proposals to reduce fuel taxes.
• Beyond the steep prices at the pump, many Americans are facing historically high utility bills. Is there anything your community can learn from surrounding communities to help lower bills?  

Reporting resources:

• Price trackers: AAA, GasBuddy and the Energy Information Administration
• Consumer Energy Alliance: A nonprofit that advocates for lower energy prices for consumers
• U.S. Oil & Gas Association: An industry trade group that lobbies for oil and natural gas producers
• National Consumers League: A nonprofit that educates consumers about vehicle mileage standards, among other things

Trump administration announces sharp increase in biodiesel fuel requirements, giving corn and soybean farmers a lift

The Trump administration announced biodiesel quota increases last week, which will give a much-needed financial lift to some corn and soybean farmers. "The new rule increases biomass-based diesel — which is partly derived from soybeans — blending by more than 60%," reports Patrick Thomas of The Wall Street Journal. "It raises the biofuel requirement for all fuels by a lower percentage."

Federal biofuel requirements from 2025-2027. (Graph via Farm Progress)

The quota announcement, which tells refineries "how much biofuel made from crops must be blended into the gasoline and diesel supply" ... "is closely watched by corn and soybean farmers," Thomas explains. The percentage also impacts companies such as Archer Daniels Midland, Bunge and Cargill, which "buy crops from farmers and process grains and oilseeds into fuel, food ingredients and other products."

Trump announced the quota requirements at a White House event "surrounded by farmers, ranchers and a gold-colored tractor," Thomas explains. Trump outlined how the increased renewable fuel requirements "would help bolster the U.S. fuel supply, while generating $10 billion for rural economies."

Trump also told the crowd that "he was seeking congressional action to allow gas containing 15% of ethanol year-round and new loan guarantees for farmers," Thomas reports. Farmers have been pushing for year-round sales of E-15 gasoline, commonly known as "Unleaded 88" for its higher octane rating. Ninety-seven percent of U.S. ethanol is made from corn, so continuous E-15 sales would primarily benefit American corn farmers.

The farmer loan guarantees Trump referenced are aimed at lowering grocery prices. Trump said the loans, which will flow through the Small Business Administration, will "open up 'massive new loan guarantees' for farmers and food producers," reports Joshua Baethge of Farm Progress. 

Coal markets remain robust as Asia increases reliance on coal to fill supply gaps; output set a record in 2023

Coal will remain an energy source for many decades
to come. (Photo by Dominik Vanyi, Unsplash)

Despite coal's reputation as the "dirtiest fossil fuel," it is still considered a reliable form of energy, and its removal from global energy systems looks to be a slow ride. "Thanks to a combination of China’s energy insecurity. . . and rising Indian demand, the continued fallout from the war in Ukraine and faltering international programs to wean developing economies off fossil fuels, coal is proving remarkably resilient," reports Bloomberg News. "Output hit a record last year."

Coal prices remain steady as the Asian market returns to coal as a more reliable energy source. "By 2026, China and India will comprise more than 70% of global coal use," Bloomberg reports. Those two countries, along with Indonesia, which opened new coal power plants last year, use about 93% of the world’s coal power, according to Global Energy Monitor.

Rob Bishop, chief executive officer of Australian miner New Hope Corp., told Bloomberg, "You look at Asia, the demand and the build-out of coal-fired power plants, particularly in India — coal’s not going anywhere anytime soon." Bloomberg reports, "In 2022, Russia’s invasion of Ukraine and blackouts during heatwaves in India further bolstered coal demand. By last year, output had risen to a record 8.7 billion tons, according to the International Energy Agency."

As nations work to transition from coal to renewables, coal will play a vital role. Global change to cleaner sources depends on multiple variables, particularly in countries such as China and Indonesia. Bloomberg reports, "Coal phaseouts, however, have proved far more challenging than anticipated. . . .The transition tests years-long expectations of rapid peaks and subsequent steep declines." Bishop told Bloomberg, "We see that the world needs more operators to mine coal and support the transition over many decades to come."

At last, the first electric vehicle charging station built with federal infrastructure funds opens in Ohio

The charging equipment at the Pilot Travel Center in Ohio.
(Photo by Dan Gearino, Inside Climate News)

The promise of federal funding for electric vehicle charging stations has finally come to fruition. "On the western outskirts of Columbus, Ohio, two doors down from a Waffle House, is a truck stop that, as of last Friday, has the first electric vehicle charging station in the country to be financed in part by the 2021 federal infrastructure law," reports Dan Gearino of Inside Climate News. "The Pilot Travel Center at I-70 and U.S. 42 has four charging ports. They are part of a partnership between General Motors and Pilot that the companies say will lead to chargers being installed at 500 Pilot and Flying J locations."

It's a first step with many more installations to go. "Ohio was one of the leaders in securing a share of this money and stands to receive $140 million over five years to construct charging stations along major travel routes," Gearino writes. The federal government is "showing progress in turning $5 billion worth of charger funding into completed projects." Charger expansion is critical to moving U.S. transportation away from gasoline dependence.

Building EV charging stations at a national truck stop chain offers travelers off-road conveniences for travelers and helps dispel "concerns from some EV drivers that the nation's charging network isn't nearly robust enough," Gearino reports. 

Pilot has other chargers at 18 locations in nine states, with ongoing expansions throughout the country. "The Ohio location is the first of those to benefit from the federal program," Gearino adds. "The country had 141,714 public charging ports as of the end of June, according to the National Renewable Energy Laboratory. . . . Many more federally funded chargers will follow the one in Ohio." The National Electric Vehicle Infrastructure program lists projects in Alaska, Colorado, Hawaii, Kentucky, Maine and Pennsylvania.

Diesel-fuel supplies reported short, especially in Southeast

Image from Southern Farm Network

Supplies of diesel fuel are running short "across the country and especially in rural America," reports Mike Davis of Southern Farm Network. Mike Steenhoek, executive director of the Soy Transportation Coalition, told Davis, "I’m hearing that the southeastern quadrant of the United States is where the problems are more pronounced, and that includes areas like Tennessee and further into the Southeast."

Farmers and other diesel users have been mainly concerned about costs of the fuel, but "In certain pockets of the country where it’s more acute than others, there’s a real and growing concern about the availability of diesel, and there are a lot of reasons for that," Steenhoek said. "The war in Ukraine has certainly contributed to that." Robert Rapier of OilPrice.com reports that "The primary reason is the cutoff of Russian imports." Also, "U.S. refinery capacity has fallen in the past few years as several unprofitable refineries were closed."

Diesel shortages could become worse in the Northeast, where home heating oil claims much of the refinery output at this time of year. "I think, overall, this is something that is going to be an emerging concern in this country," Steenhoek told Davis. He said areas that get diesel supplies from river barges are threatened by low water in rivers. "In those areas that are further removed from the river and more in the Midwest and the northwestern part of the Midwest, I’m hearing fewer concerns about getting diesel supply. I think it depends on which part of the country you’re in. I do think that this is a trend that we’re going to be hearing more of."

Rural Midwestern bankers say local economies thrive, but predict economic downturn with little impact from E15 sales

Creighton University chart compares current month to last month and year ago; click here to download it and chart below.

An April survey of rural bankers in 10 Midwestern states that rely on agriculture and energy showed still-growing local economies amid deepening concerns about the near future. The index surveys bankers in about 200 rural communities with an average population of 1,300 in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.

The overall area economic index fell to a still-positive 62.0 from 65.4 in March; above 50 is growth-positive. Farmland prices are still soaring, home sales are up, retail sales are growing and hiring is up, bankers said.

"The region recorded a 34% gain in farm commodity prices over the past 12 months, but low short-term interest rates and healthy farm income have underpinned the Rural Mainstreet Economy," writes Creighton University economist Ernie Goss, who compiles the index.

However, the loan-volume index fell from 61.9 in March to 51.9 in April, and the confidence index, which predicts the area economy six months from now, dropped from 54 in March to 39.1. Most bankers surveyed (56.5%) believed President Biden's decision to allow the sale of E15 fuel (which has more ethanol) this summer would have little or no impact on their economies, while 39.1% believed it would have a positive effect and 4.4% believed it would have a negative effect.

The vast majority of bankers (91.7%) predicted that the Federal Reserve's Open Market Committee will raise the interest rate by 0.5 percentage points at its next meeting, and 8.3% said the committee will raise the rate by 0.25 points. None predicted the rate would remain unchanged.

An Appalachian county illustrates how higher gas prices are hitting rural communities hard, from work to groceries

Owsley County, Kentucky
(Wikipedia map)

High gasoline prices are hurting Americans of all stripes, but rural residents are having a particularly tough time.

In southeastern Kentucky, "The surge in prices has rippled throughout the region, where people already have to drive far to commute to work or school, visit family and run their businesses," Corinne Boyer reports from Owsley County, one of the nation's poorest, for Eastern Kentucky University's WEKU-FM.

Fuel distributor Bob Riley, who serves Owsley County's gas stations, told Boyer the higher costs mean stations hit their credit limit sooner and can't buy as much gas from him. Riley hits his own credit limit sooner, restricting the amount of supply he can have on hand.

Increased fuel prices drive up prices on goods, too, Riley told Boyer: "It also has a big effect on that hot dog you just brought at Kroger's and the produce, all your goods because everything's—at some point in the distribution chain—carried by a truck."

Commuting for college or work has become more prevalent "as population and investment declines in rural parts of the country," Boyer reports. Some people have had to cut back on work hours because they can't afford to drive far away to work at a low-wage job.

Megan Warner, who works at the Owsley County Library, said many city dwellers may not understand what it's like to live in a rural area where jobs don't pay well and housing is limited. "People tell you a lot, too, that you just need to get out there and work hard," Warner told Boyer. "It's hard to work hard when they basically just push you down with all these high prices that probably aren't going to get any lower anytime soon."

Dee Davis, president and founder of the Whitesburg-based Center for Rural Strategies, suggested ways policymakers could help rural communities if gas prices remain high: "Minimum wage can go up. It has been too low, too long. And we can make earned income tax credits permanent."

Two weeks ago, President Biden announced the release of a million barrels of oil per day from the nation's Strategic Petroleum Reserve. Last week, he announced that E15 fuel, which contains more ethanol, will be available for sale this summer.

Biden greenlights E15 summer sales, releases funding guide for local governments in rural infrastructure tour

Senior officials with the Biden administration will visit 30 rural communities this month to tout billions of dollars in funding for rural broadband, water, jobs, roads, and more as part of a "rural infrastructure tour" launched Monday. That includes $14.6 billion in rural-specific programs in the $1.2 trillion infrastructure bill, which was bipartisan, along with billions more in regional and state funding that will be spent on roads, bridges and waterways in rural areas, Chuck Abbott reports for the Food & Environment Reporting Network.

President Biden is kicking off the tour today with a visit to an ethanol plant in Menlo, Iowa, where he will announce that E15 gasoline will be sold this summer to help drivers save at the pump, Chris Clayton reports for DTN/The Progressive Farmer.

Normally E15, which has 15 percent ethanol, can't be sold from June 1 to Sept. 15 because it generates more air pollution in hot weather. And the Supreme Court ruled in January that the Environmental Protection Agency doesn't have the authority to permanently greenlight E15 sales. But EPA is only issuing an emergency waiver here. A White House spokesperson said EPA "is considering other actions to further spur the use of E15 year-round, including continued talks with states that have already sent requests to EPA about year-round E15," Clayton reports.

The administration published a Bipartisan Infrastructure Law Rural Playbook to help rural governments identify funding opportunities. "It provides information on the 'what, when, where, and how to apply' for funding under the law, according to the White House, and identifies more than 100 programs funded," Alex Gangitano reports for The Hill. "The playbook builds on the guidebook the administration released in January to help state and local governments access funding from the law."

The administration will announce $2 billion in new rural funding this month as part of the tour, White House infrastructure coordinator Mitch Landrieu said. That includes $1 billion for an America the Beautiful Challenge "to combine federal and private funding for locally-led land and water conservation work," Abbott reports. "The government committed $440 million over five years for grants administered by the National Fish and Wildlife Foundation." Interior Secretary Deb Haaland announced the funding in Colorado while touring a wildfire-control site.

Pioneering study says Renewable Fuel Standard has steadied commodity markets and boosted farmers' income

"In a first-of-its kind study, researchers at Purdue University have illustrated the impact of the Renewable Fuel Standard on the production of biofuels," Madelyn Ostendorf reports for Successful Farming. "The study evaluates the long- and short-term economic impacts of market forces and policies on the biofuels industry, and successfully identified the impact of each market driver."

The federal policy requires transportation fuel to have a minimum (increasing over time) amount of renewable fuels, such as ethanol and biodiesel made from corn and soybeans. RFS and market forces have caused biofuel production and consumption to increase in the U.S. since it was enacted in 2005. "Farzad Taheripour, the agricultural economist who led the study, says RFS played a critical role in reducing uncertainties in commodity markets," Ostendorf reports. "Most significantly, RFS helped farmers use their resources more efficiently."

Taheripour told Ostendorf, "With producing more corn and soybeans, over time farmers were able to bring fallow land back to production, and U.S. annual farm income increased by $8.3 billion between 2004 and 2011, with an additional annual income of $2.3 billion between 2011 and 2016."

The researchers used a complicated computation model that sorts commodities into categories by use (vegetable oils vs. grain meals, for example), and factors in variables such as production rate, consumption rate. "The model takes into account the use of commodity feed stocks for food and fuel, and the competition or trade-offs between those and other market uses," Taheripour told Ostendorf. "It also traces land use and handles intensification in crop production due to technological progress, multicropping, and conversion of unused cropland to crop production. This is the first biofuels study to be able to piece out all these factors individually and to combine that information with short-term models to capture finer and shorter-term impacts."

Court nixes year-round sales of gasoline with 15% ethanol

A federal appeals has thrown out a Trump-administration Environmental Protection Agency rule change that allowed sale of a 15% ethanol gasoline blend in the summer. "The decision deals a significant blow to the ethanol industry and corn farmers who grow the crop from which the fuel additive is made. They had anticipated increased ethanol demand through year-round sales of the higher blend," David Pitt reports for The Associated Press.

Most gasoline sold in the U.S. has 10% ethanol, but the EPA changed the rule in May 2019 to fulfill Trump's promises to Midwestern corn farmers. "Provisions of the Clean Air Act have prohibited the sale of certain fuels with a higher volatility from June 1 through Sept. 15 to limit smog," Pitt reports. "Congress has allowed 10% ethanol, and the EPA in its 2019 ruling revised the interpretation of the exemption to federal law to include the 15% ethanol blend."

Some rural areas in East run short of gasoline from panic buying after cyberattack on major pipeline

The Clinton County News in Albany, Ky., ran these photos of lines at local gas pumps.

Rural areas, which are more likely to be at or near the end of fuel-truck routes and have many long commuters who fill their tanks more than once a week, have seen panic buying due to the shutdown of a major fuel pipeline from a Russian cyberattack, and some are running short.

"More than 1,000 gas stations in the Southeast reported running out of fuel," The Associated Press reports. "Government officials acted swiftly to waive safety and environmental rules to speed the delivery of fuel by truck, ship or rail to motorists and airports, even as they sought to assure the public that there was no cause for alarm."

"Gasoline has been in short supply at stations in several Southern Kentucky towns," reports Lexington's WKYT. "It started Monday in Clinton County, then spread to Wayne County." Both are on the Tennessee border and get most if not all of their wholesale fuel from Tennessee. The Clinton County News headlined, "Out of gas: Monday's run at local pumps leaves tanks empty."

Recent problems may have made motorists more wary of supplies. Darrell Smith of Priceless Gas in Monticello said that in recent weeks his station has "had rolling outages because there’s no drivers to drive the trucks to bring the gas in. It’s a two-fold problem right now."

Summer may bring fuel shortages due to tanker-truck driver shortage, could raise farming costs and inhibit tourism

Gasoline may be in short supply at the pump this summer. There's plenty of crude oil and gasoline, but refineries can't find enough qualified tanker-truck drivers to get it to the gas stations.

"According to the National Tank Truck Carriers, the industry's trade group, somewhere between 20% to 25% of tank trucks in the fleet are parked heading into this summer due to a paucity of qualified drivers. At this point in 2019, only 10% of trucks were sitting idle for that reason," Chris Isidore reports for CNN. "Drivers left the business a year ago when gasoline demand ground to a near halt during the early pandemic-related shutdowns."

NTTC executive vice president Ryan Streblow told Isidore that driver shortages have been a long-standing issue, but the pandemic "metastasized it" and caused it to grow "exponentially."

Oklahoma tanker-truck executive Holly McCormick cited another factor: "We're also working with an aging work force. Many said 'I might as well take it as a cue to retire.'" She also said the shutdown of many driver schools early in the pandemic disrupted the pipeline of new drivers who would have taken many retirees' places. "And then there's a new federal clearinghouse that went online in January 2020 to identify truck drivers with prior drug or alcohol violations or failed drug tests, which knocked about 40,000 to 60,000 total drivers out of the national employment pool," Isidore reports.

Truck drivers have been in short supply for about 25 years, a problem that has grown more acute in the past five years or so. But tanker-truck driving is more specialized, requiring extra certification and training. "And while the jobs are more attractive than some long-haul trucking jobs that can keep drivers away from home for days or weeks at a time, it is strenuous, difficult work," Isidore reports, adding that a gas shortage and higher prices could raise farming costs and grocery prices, and, if vacationers can't afford to hit the road, that could hurt rural areas that depend on tourism.

EPA sides with corn and ethanol producers on small-refinery exemptions to the Renewable Fuel Standard

The Environmental Protection Agency "is changing course on small-refinery exemptions to the Renewable Fuel Standard, announcing Monday it agrees with a Court of Appeals decision last year that the agency had mismanaged the program under the Trump administration," Todd Neeley reports for DTN/The Progressive Farmer. The marked increase in such exemptions over the past four years hurt rural America and the biofuels industry, EPA said. 

"The 10th Circuit Court of Appeals, based in Denver, had ruled in January 2020 that EPA mishandled the exemptions program when it came to three small-refinery exemptions in particular. The Trump administration delayed action on the Renewable Fuel Standard to reflect the court's decision," Neeley reports. The Biden administration said it agrees with the ruling, which said the exemptions were meant to be temporary and that the agency can only extend pre-existing exemptions.

With the appeals court ruling "before the U.S. Supreme Court this spring, the EPA statement Monday means the Biden administration will not be defending the Trump administration's stance on the small-refinery exemptions to the RFS," Neeley reports.

The announcement was welcomed by corn growers and the ethanol industry, as well as the states where they have a large footprint, Neeley reports: "Republican Iowa Gov. Kim Reynolds said although the Biden administration's decision is welcomed, she wants to see the Supreme Court uphold the RFS."

Weather hits farmers: 'Mother Nature is a really tough business partner, and she has been pretty unforgiving'

Montana feedlot operator Jake Feddes sent Bloomberg this photo of calves with ears taped to prevent freezing

"Farmers from Kansas to Alabama have never dealt with weather like this," says The Wall Street Journal's headline on a story by Jacob Bunge. It's killing livestock, disrupting transport and shutting processing plants, and is "projected to cost agriculture companies and farmers millions of dollars," he reports. "Farmers and state agriculture officials said it remained too early to tally all the costs."

Oklahoma Agriculture Commissioner Blayne Arthur summed it up for Bunge: “Mother Nature is a really tough business partner, and she has been pretty unforgiving here the past few days.”

For Reuters, Tom Polansek reports from Texas, the state perhaps worst hit by the extreme weather, and the No. 1 cattle state. Newborn calves "are particularly vulnerable to the shock of the cold when they leave their mothers’ warm wombs covered in fluid," he noted. "Struggles to care for surviving livestock are the latest challenges for ranchers who over the past year have dealt with Covid-19 cutting demand for meat at restaurants and shuttering slaughterhouses."

Polansek reports, "Ranchers said they are spending long, cold hours breaking up ice in water tanks and on frozen ponds so animals have something to drink. Icy conditions have turned diesel fuel into a useless gel in tractors. Ranchers said they are using gasoline-powered pickup trucks to transport hay that cattle can eat and use for warm bedding."

Farmers are using pantyhose and duct tape to keep calves' ears from freezing and falling off, Bloomberg reports: "For the flora and fauna -- as well as those who make their living cultivating them -- it’s been equally disastrous, a Darwinian mix of outlandish and gruesome. . .. In Mississippi, four broiler houses were destroyed from collapsed roofs overwhelmed by snow and ice."

U.S. Department of Agriculture map shows major cattle counties in dark green; for a larger version, click on it.

EPA doesn't appeal court decision limiting small-refinery biofuel waivers, handing a win to corn and ethanol interests

"The Trump administration has decided not to appeal a court ruling that would sharply reduce its use of waivers exempting refineries from the nation’s biofuels regulation, cheering the corn lobby but drawing anger from oil refiners," Stephanie Kelly reports for Reuters. The Environmental Protection Agency had to appeal by yesterday, and no such filing was entered.

"EPA had been expected to apply the decision nationwide and drastically cut the number of exemptions it issues," Ryan McCrimmon reports for Politico's Morning Agriculture. "But the president faced heavy pressure from Republicans and Attorney General William Barr not to do so. That prompted Trump to instead request an extension until March 24 on whether to appeal the ruling." In the end, the administration apparently decided not to appeal, even after more than a dozen Republican senators from oil-producing states published an open letter to the president warning that allowing the ruling to stand would financially endanger small refineries.

"The decision appears to end a years-long battle between the rival oil and corn industries," two important Trump constituencies, Kelly reports. "Refiners argue the waivers are crucial to keeping small refining facilities in business, but agriculture representatives say they have been overused and hurt farmers by eroding demand for corn-based ethanol."

The battle centers over the Renewable Fuels Standard, which requires refiners to blend increasing amounts of ethanol into their gasoline each year. Small refiners that would be financially hurt by adhering to the blending standards can seek waivers, but corn interests have accused the Trump administration of improperly using the waivers as a way to get around the RFS, Kelly reports.

EPA appears to be complying with the court ruling. In late February, it had scaled back its granting of waivers, McCrimmon notes.

Federal court rules that EPA wrongly granted biofuel waivers to three refineries; could spell trouble for other waivers

On Friday, a federal appeals court ruled that the Environmental Protection Agency was wrong to give three biofuel waivers to oil refineries in 2017. The decision "has cast doubt on the legitimacy of dozens of other EPA exemptions granted under similar circumstances, according to industry experts and agency data," Richard Valdmanis reports for Reuters.

The exemptions are meant to help small refiners that would suffer financially if forced to comply with the Renewable Fuel Standard's requirement to blend ethanol into the fuel supply. Corn and ethanol interests say the Trump administration has granted an unusually large number of waivers to help the oil industry, and say the increased waivers have hurt the ethanol industry, Valdmanis reports.

"The oil industry argues the waivers are needed to protect refining jobs, and says the waivers do not affect actual ethanol usage," Valdmanis reports. However, at least 18 ethanol plants have shuttered because of the declining demand for ethanol. The court's decision "spells uncertainty for a handful of independent refiners that secured lucrative waivers from the Trump administration, and could fire up prices for the biofuel blending credits those facilities need to comply" with law, Valdmanis reports.

According to the court's decision, "the EPA overstepped its authority to grant the waivers because the refineries had not received exemptions in the previous year. The court said the RFS is worded in such a way that any exemption granted to a small refinery after 2010 must take the form of an 'extension'," Valdmanis reports. "It also noted research showing oil refineries are able to pass the costs of complying with the RFS to consumers by raising fuel prices, suggesting the waivers were not needed to help the oil refineries financially."

GAO to review Trump administration's use of biofuel waivers

"The U.S. Government Accountability Office will review the Trump administration’s use of waivers exempting oil refineries from the nation’s biofuel blending requirements, according to a letter dated Friday, after lawmakers called for an investigation," Stephanie Kelly reports for Reuters.

In August, a bipartisan group of congressional representatives from corn-growing states like Iowa and Minnesota wrote a letter asking the GAO to review what factors the Environmental Protection Agency considered in approving the waivers in 2018 and examine the Energy Department's process for recommending exemptions to the EPA, Kelly reports. The lawmakers wrote that they wanted the review because excessive Renewable Fuel Standard waivers have harmed rural communities. On Jan. 10, a GAO representative wrote to confirm that the GAO will begin the review "shortly."

The RFS requires that refineries add a certain amount of ethanol into their gasoline. The waivers are meant to protect financially distressed small refineries by eliminating the expense of blending ethanol into their gasoline, but corn and ethanol producers and processors have accused the Trump administration of improperly granting them as a boon to the petroleum industry, Kelly reports.

"The EPA has roughly quadrupled the number of waivers it has been granting to oil refineries since Donald Trump became president. The agency has also routinely waived higher volumes than the DOE has recommended," Kelly reports. The increased waivers, plus lower demand, have caused at least 18 ethanol plants to shutter and has left many corn growers without buyers.

China halts plans to buy more ethanol from the U.S.

China is halting plans to require its gasoline blend to contain 10 percent ethanol this year, dashing the hopes of Americans who had hoped to export more corn-based ethanol.

"China was expected to increase imports of U.S. ethanol after the recent announcement of Phase 1 of a trade agreement," Hallie Gu, Muyu Xu, and Shivani Singh report for Reuters. "But at a meeting in late December with ethanol producers and oil majors, China’s National Development and Reform Commission said it will now halt the rollout of ethanol-gasoline supplies beyond the current handful of provinces that have already implemented full or partial blends, according to two of the three sources briefed on the meeting."

Chinese officials announced in 2017 the plan to move to an E10 fuel mix starting in 2020. But in 2017 the nation had a huge corn surplus, and now it doesn't. China also lacks the infrastructure to produce enough corn-based ethanol to meet the E10 target, Reuters reports.

American corn and ethanol producers had hoped to revive trade with China. In 2016, the U.S. exported about 20% of its fuel ethanol to China, worth $300 million that year, but ethanol exports to China have slowed dramatically because of the tariffs added during the trade war. "In 2018, China was the eighth-biggest market for U.S. ethanol exports, taking up 52.9 million gallons of the corn-based fuel, according to the RFA. It also bought 290,173 tonnes of U.S. corn, U.S. Agriculture Department data shows," Reuters reports.