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Indiana Farmers Still Waiting On EPA Ethanol Rule

By Barbara Brosher

Posted November 28, 2014

A year after the Environmental Protection Agency first announced its plan to reduce the amount of ethanol blended into U.S. gasoline, Indiana farmers and those in the ethanol industry are still waiting for the final rule on the volume obligation for 2014.

Indiana Farm Bureau National Policy Adviser Kyle Cline says the potential ethanol reduction in gasoline is already affecting investment and trading decisions in agriculture. He says if the proposed reduction is finalized, it could have a significant impact on farmers' incomes.

"We are at the point right now where many farmers, as we move forward next year into the near future, are going to be close to a break-even point on their farms in terms of where they are economically," Cline says. "You take this and remove this. That can have a pretty devastating impact on farmers and their business."

But, that may not be the case looking at a bigger picture, says Purdue University agricultural economy professor Farzad Taheripour.

He says the major factor currently affecting the ethanol industry is not the reduction of amount of ethanol blended into U.S. gasoline but the low price of crude oil.

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