Biofuel, Pork Aid in House Bill

Ethanol Groups and NPPC Champion Provisions in New Aid Package

Jerry Hagstrom
By  Jerry Hagstrom , DTN Political Correspondent
The House of Representatives has introduced an aid bill that details several provisions for agriculture, including aid for ethanol producers and indemnity programs for pork producers. The House could vote on the bill as early as Friday, which would likely lead to some negotiations with the Senate later in May. (DTN file photo)

WASHINGTON, D.C. (DTN) -- Agricultural groups on Tuesday praised the inclusion of provisions for biofuels, pork producers and food aid COVID-19 legislation unveiled by House Democrats.

The bill is dubbed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. House Speaker Nancy Pelosi, D-Calif., unveiled the $3 trillion bill on Tuesday and the House could vote on the bill later this week, though Senate Majority Leader Mitch McConnell, R-Ky., has criticized the House effort. The House could vote on the bill as early as Friday.

House Democratic leaders recognize their legislation has little chance in the Senate, but it provides a marker to set for negotiations with the Senate and the White House. Republicans also have some coronavirus-related legislation they would like to pass.

But the HEROES Act has several provisions tied to agriculture, including funds for biofuels and pork producers, and loosening banking regulations for hemp and marijuana growers. The bill would also again provide more funds to Small Business Administration emergency loans that farmers have been increasingly applying for over the past month.

The biofuels provision would authorize USDA to provide 45 cents per gallon of ethanol produced from January 1 through May 1, 2020. Producers forced offline for one or more calendar months during this time would qualify for the same credit, based on half the volume produced during the corresponding month or months in 2019.

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The Renewable Fuels Association thanked several key Midwest lawmakers who led a letter to House leadership, warning that a struggling biofuel industry could have cascading effects on the entire agriculture sector.

"The Renewable Fuel Reimbursement Program represents a potential lifeline for the 350,000 men and women whose jobs depend on a healthy and vibrant ethanol industry," said RFA President and CEO Geoff Cooper. Cooper added, "RFA is urging swift passage of the HEROES Act and looks forward to the Renewable Fuel Reimbursement Program becoming law.

Growth Energy CEO Emily Skor said, "The HEROES Act offers a sorely needed beacon of hope for biofuel workers, our farm partners, and thousands of rural communities struggling to stay afloat."

American Coalition for Ethanol (ACE) CEO Brian Jennings noted this is the first time Congress has introduced a stimulus bill that would provide aid directly to biofuel producers, "and for that we are extremely appreciative." Jennings added, "It's important that securing aid for the biofuel sector continues to be a bipartisan goal. This is one important step in the process, but until a bill is signed into law by the president that contains direct aid, we need to stay in constant contact with members of Congress."

The National Pork Producers Council (NPPC) also expressed strong support for livestock agriculture provisions in the HEROES Act introduced by House Democrats. NPPC noted that the bill includes funding for the Agriculture Department to provide compensation for euthanized livestock that can't be processed into the food supply due to COVID-related packing plant capacity reductions.

The bill also would expand direct payments to livestock farmers who have suffered severe losses as COVID-related market disruptions have caused the value of their livestock to plummet. NPPC noted that it continues to seek the removal of USDA payment caps "to ensure much-needed aid is extended to those farmers who need it most."

More funding would also be provided for animal health surveillance and laboratories, which have been tapped to perform COVID-19 testing during this human health emergency.

"U.S. pork producers are facing an unprecedented financial and animal welfare crisis," said Howard "A.V." Roth, NPPC president and a hog farmer from Wauzeka, Wis. "These provisions represent a critical lifeline for hog farmers struggling to weather this storm. We urge Congress to come together quickly on final legislation that includes these provisions."

The bill also includes a provision dubbed the Secure and Fair Enforcement Banking Act that would protect financial institutions from liability for providing loans and banking services to cannibas-related businesses. Both hemp and marijuana industries have been pushing for Congress to pass such a bill.

The bill also would boost food-aid benefits to families 15% under the Supplemental Nutrition Assistance Program, a key provision for House Democrats. The School Nutrition Association, which represents school food service directors and companies that supply school foods, also expressed strong support for the HEROES Act because it includes money to help child nutrition programs cover costs with COVID-19 school closures. SNA has lobbied for financial relief, PPE and other support for school meal programs, which continue to serve needy students during COVID-19 school closures.

DTN Ag Policy Editor Chris Clayton contributed to this report. Jerry Hagstrom can be reached at jhagstrom@nationaljournal.com

Follow him on Twitter @hagstromreport

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Jerry Hagstrom