Iowa farmers may see improved profit margins on their corn following potential changes to E15 regulations as Sen. Chuck Grassley (R-Iowa) pushes for year-round nationwide E15, a gasoline blend with 15 percent ethanol, to be signed into law. The national summertime use of E15 is currently legal due to the Environmental Protection Agency’s (EPA) renewal of its E15 waiver on June 29. Though the waiver has been renewed for five consecutive years, it is not a law and is subject to change. The waiver serves as an emergency order lifting the banned sale of E15 nationwide in the summer months. The renewal of this waiver is a direct response to diminishing oil supplies as a result of the conflict in Iran, leading to the closing of the Strait of Hormuz, which has caused oil prices to rise and, by extension, the price of gasoline and diesel. With the price of standard gasoline higher, Iowa customers have turned to E15. In May, Iowans purchased $47 million worth of E15, an increase from the $37 million they spent in April. Not only are Iowans saving at the pump by purchasing E15, but Iowa farmers could benefit as well. Corn growers in Iowa have historically seen razor-thin profit margins on their yields, with losses not being uncommon. However, as demand for E15 rises, so does the demand for the corn used to make it, meaning Iowa farmers may see higher profit margins on their crop. Iowa leads the nation in ethanol production, producing over four billion gallons annually, which equates to approximately 30 percent of the nation’s total output. Regardless of the waiver, Iowa is one of eight states that allow permanent year-round use of E15.
