South Dakota Corn Growers Association Expects RFS Announcement to Boost Local Ethanol Industry

Oct 7, 2019

The South Dakota Corn Growers Association is among groups praising the Trump administration’s recent move to maintain the Renewable Fuel Standard.

Congress created the RFS to expand the nation’s renewable fuel industry and reduce reliance on foreign oil, but oil companies are often granted exemptions to the standard’s production requirements, which reduces overall demand for ethanol.

Last week’s announcement includes an increase in total ethanol production to 15 billion gallons in 2020. Lisa Richardson of the South Dakota Corn Growers Association says that’s a big deal for South Dakota, where nearly half of the year’s total corn bushels goes to ethanol production.

“Historically we use about 350-400 million [bushels] for ethanol, we use 80 million for all livestock combined, and the rest we export out of the state—primarily to other countries,” she explains.

Richardson expects ethanol producers in the state will enjoy better access to the marketplace as a result of this announcement.