Ag Secretary Says Oil Refiners Need RFS Relief, But Farmers Also Need Strong NAFTA
Source: By Chris Clayton, Progressive Farmer • Posted: Wednesday, December 13, 2017
U.S. Agriculture Secretary Sonny Perdue talks before members of the National Press Club on Tuesday about the Renewable Fuel Standard, the farm bill and trade. (DTN photo by Chris Clayton)
WASHINGTON (DTN) — Agriculture Secretary Sonny Perdue reiterated Tuesday that President Donald Trump will keep his support for the Renewable Fuel Standard, but said changes are needed to help the oil-refining industry deal with what is seen as speculation in the market for renewable fuel credits.
Perdue spoke about an array of topics Tuesday during a luncheon speech and question session at the National Press Club. On biofuels policy, Perdue said Trump made a commitment to farm-state supporters to protect the Renewable Fuel Standard when he was campaigning for the office. Perdue said the president reiterated that commitment to oil-state senators who met with the president last week over Renewable Identification Number (RIN) prices.
“The president understands we’ve got to do something about RIN prices,” Perdue said. “The good news is there’s a win-win in here. It’s very complex, but there’s a win-win.”
Perdue said ethanol producers are not in the market for the RIN prices, but rather for the renewable volume of ethanol production. The Trump administration is working this week with the EPA, Sen. Ted Cruz, R-Texas, and others “to resolve the RIN prices that some believe to be very speculative, cornering of the market there that has damaged refiners,” Perdue said.
“The president wants the refiners to flourish, and actually more refineries, based on our new petroleum supplies and natural resources,” Perdue said. “But he also knows he’s committed, and he’s articulated to those nine senators that he is committed to the RFS program.”
Looking at the farm bill, Perdue said USDA is going to consult with the House and Senate Agriculture Committees in 2018. Based on some perspectives USDA has heard from producers, that information and broad principles will be shared with the committees, but USDA will not write a proposed farm bill, he said. “We will be as hands-on or as hands-off as they choose us to be,” he said.
Perdue said he expects tweaks in the farm bill, including changes to help dairy and cotton producers. Comparing the farm safety net to the safety net of a trapeze act in a circus, Perdue said the safety net shouldn’t be too high or too low.
“The balance is to have it at the right area where there is a risk in farming,” Perdue said. “Farmers don’t mind risk. They just don’t want to lose the farm, literally, if the crop, weather, hurricanes or floods come in and destroy all their equity.”