By Stephanie Kelly
NEW YORK, June 15 (Reuters) – The U.S. Division of Agriculture (USDA) will give $700 million in support to biofuels producers as a part of a bundle to help industries recovering from the monetary devastation of the coronavirus pandemic, officers mentioned on Tuesday.
Biofuel teams had been advocating for aid after the pandemic slashed gasoline demand and sank consumption of biofuels like ethanol. The USDA mentioned it plans to implement the help within the subsequent 60 days.
“USDA is honoring its dedication to get monetary help to producers and demanding agricultural companies, particularly these overlooked or underserved by earlier COVID support,” mentioned Agriculture Secretary Tom Vilsack in an announcement.
The Renewable Fuels Affiliation welcomed the information.
“This help comes at a essential time, as ethanol producers are nonetheless struggling to get well from COVID-related market losses and at the moment are dealing with traditionally excessive feedstock prices,” mentioned Geoff Cooper, RFA president. “Many vegetation stay offline or are working at diminished output charges.”
Margins to supply ethanol within the U.S. Corn Belt have risen to 16 cents per gallon, barely larger than 13 cents per gallon throughout the identical time final 12 months, Refinitiv Eikon information confirmed.
Ethanol manufacturing has risen to about 1.1 million barrels per day, up from about 837,000 bpd a 12 months in the past, Vitality Info Administration information confirmed.
The biofuels support is a part of a bundle that additionally helps teams together with timber harvesters and dairy farmers.
(Reporting by Stephanie Kelly; Modifying by Aurora Ellis)
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