RFA case study shows damage idling ethanol plants has on communities

In Washington, the idling of an ethanol plant—even if temporary—sends damaging shockwaves throughout the entire community in which the facility operates, including the immediate loss of a local market for corn and a sudden drop in local corn prices. According to a new case study conducted by the Renewable Fuels Association (RFA), the idling of an ethanol plant can cause local corn prices to fall by as much as 15-25 cents per bushel, resulting in significant financial losses for area farmers.

The analysis underscores the devastating impact of the RFS small refiner exemptions recently granted by EPA, which have allowed dozens of oil refineries to escape their legal obligations to blend renewable fuels like ethanol. Due in large part to the demand destruction triggered by the refinery exemptions, at least 18 ethanol plants, representing a combined production capacity of nearly 1 billion gallons, have permanently or temporarily idled production over the past year.