USDA Report Highlights Hurdles to Higher Ethanol Blends

May 11, 2022

Biofuel and farm groups see E15 and other higher blends of corn ethanol into gasoline as the strategy to increased sales, but the current structure of the Renewable Fuel Standard “does not serve to incentivize ethanol blends higher than E10,” according to a report from USDA’s Office of the Chief Economist. The report “evaluates market conditions and provides an analysis of barriers for higher ethanol blends, including technical, regulatory, consumer acceptance, and economic challenges.”

The report concludes, “Looking forward, there are concerns about possible ethanol demand reductions given the projected reduction in gasoline demand in the coming decade. Given the decline in FFVs (flex fuel vehicles) and lack of growth in E85 sales, mid-level ethanol blends, in particular E15, are options to expand future ethanol markets. Furthermore, transitioning to ethanol blends between E11 to E25 will be easier and less costly than blends above E25. The current structure of the RFS, combined with the commercialization stage of cellulosic fuels, does not serve to incentivize ethanol blends higher than E10. Federal and State policies are providing incentives for the conversion of refueling infrastructure.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.