Capping RIN prices at 10 cents could hit biofuel demand and crop prices hard

December 25, 2017 |

In Illinois, economists at the University of Illinois Urbana-Champaign say Ted Cruz’s proposal to cap RIN prices at 10 cents would negatively impact farmers because the mandate levels and RIN price levels are interlinked, so would essentially limit biomass-based diesel to 876 million gallons, keeping the ethanol blend at 10% or lower and cutting the advanced biofuel mandate also to 876 million gallons. Doing so would significantly reduce demand for biofuel, removing the floor from feedstock prices and hitting farmers in the pocket.

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Category: Producer News

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