The biofuel industry is asking USDA for funds from the Commodity Credit Corporation (CCC) to provide help for the industry as they weather negative margins amid slumping demand for motor fuels.
In an April 1 letter to USDA Secretary Sonny Perdue, the Renewable Fuels Association (RFA) and others in the industry are seeking the action by USDA to offset a portion of corn and soybean purchases, or to provide direct assistance to companies to keep staff, according to the letter seen by Reuters.
Those signing the letter argue the industry is facing “collapsing demand” for the biofuels and that about 3.5 billion gallons of annual ethanol capacity has been idled at a quarter of U.S. production facilities.
CCC is a fund that USDA has available that provides the department with authorities to use the funding to aid U.S. agriculture. USDA used the CCC authority in deploying aid to farmers for trade damages – the Market Facilitation Program (MFP).
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