The U.S. House of Representatives is expected to advance a $1.2 trillion funding package that omits language allowing consumers nationwide to access fuels blended with 15% corn ethanol, commonly known as E15, intensifying frustration across farm country and the renewable fuels sector. For corn growers, the latest development underscores a widening gap between congressional action and what producers say is urgently needed to stabilize markets and protect farm profitability.
Supporters of E15 argue the fuel provides higher octane, lower emissions, and a domestically produced energy option while creating critical demand for U.S.-grown corn. Yet year-round, nationwide access has repeatedly stalled in Congress, forcing growers to rely on temporary waivers or seasonal allowances rather than permanent statutory certainty.
The omission comes as new research highlights what is at stake for corn-producing states. A recent study released by Iowa Corn and the Iowa Renewable Fuels Association warns that without immediate passage of nationwide, year-round E15 and access to ultra-low carbon ethanol markets such as sustainable aviation fuel and marine fuel, Iowa’s corn and ethanol industry will remain on a downward trajectory.
Iowa’s corn farmers continue to lead the nation in total corn production, and the state has long been considered one of the most profitable places in the world to produce ethanol. Iowa-grown corn yields are rising at a pace roughly 15 percent faster than the national average, making access to expanded and new markets increasingly critical to sustaining the state’s agricultural economy and maintaining long-term profitability for farm families.
The study was released at a time when farmers are grappling with a carryout exceeding 2 billion bushels, alongside rising input costs tied to fertilizer, seed, machinery, and other essential farm expenses. According to the analysis, corn prices are estimated at $1.52 per bushel under current conditions. Without expanded access to existing markets and the development of new demand channels, the study warns many producers may be forced to scale back operations or exit farming altogether.
That economic pressure helps explain the intensity of the reaction to the House funding bill. According to reporting from POLITICO, Rep. Zach Nunn of Iowa and other Midwestern lawmakers had threatened to block movement of the funding package without an agreement on year-round E15. After late-night negotiations, House Republican leaders agreed instead to establish a congressional working group focused on ethanol policy, rather than include E15 language directly in the bill.
In response to the development, Ohio farmer and National Corn Growers Association President Jed Bower released the following statement:
“Corn growers are disgusted, disappointed and disillusioned that after spending years of calling for passage of E15, Congress has again punted, and it has done so in a spectacularly weak and offensive way. Bizarrely, members of Congress are now planning to establish a rural energy council to explore this legislation as if we are in the beginning stages of discussing E15. We already have a bill. We already have an agreement with the petroleum industry after months of negotiation. But instead of acting, Congress is now suggesting a process-ridden task force that kicks the can down the road once again. Congress is choosing to leave America’s 500,000 corn farmers behind in favor of a handful of refineries.”
Corn growers in neighboring states echoed that frustration. Leaders with the Nebraska Corn Board, who also serve on the National Corn Growers Association board, said the latest proposal reflects unnecessary delay on an issue they say has already been settled.
“Unfortunately, we are seeing a little bit of struggle with that. They’re talking about spinning it off into a secondary bill with an advisory committee that meets in February. And we just feel that’s not acceptable. The president authorized E15 in May of 2019. The EPA authorized E15 in 2011. And to struggle to get the bureaucratic blockage of our corn markets removed and allow the year round sales of E15 just has to be done sooner than later. Our ag communities and our farmers cannot wait any longer,” said Jan tenBensel.
Another Nebraska Corn Board member pointed to the fiscal argument for E15, noting that opposition is no longer centered on the policy’s merits but on navigating the legislative process itself.
“When we look at E15, when the CBO comes out and scores it, it actually comes out as a cost savings just because the change in reference prices, the effect of an ARC and PLC. So it’s a win there. It’s a win for consumers. It’s going to be cheaper. On gasoline as well… when we’re out here talking with them, it doesn’t seem like we’re even talking merits of E15 anymore, not the benefits, not the cost savings. It’s honestly trying to figure out just how to get this through and work through the House and the Senate and the bureaucracy,” said Jason Lewis.
The Iowa Corn and Iowa Renewable Fuels Association study emphasizes that while year-round E15 would help shrink the immediate demand gap, long-term profitability will also depend on accessing ultra-low carbon ethanol markets. That includes deploying technology such as carbon capture and sequestration pipelines to reduce ethanol’s carbon intensity and compete in premium global markets. Four of the top five export destinations for U.S. ethanol—the European Union, the United Kingdom, Canada, and Colombia—already operate under low-carbon fuel policies tied to aggressive decarbonization targets.
“Iowa corn farmers are struggling. Many of us don’t know what the future holds without access to new markets,” said Mark Mueller, president of the Iowa Corn Growers Association, who farms near Waverly, Iowa. “The Corn Impact study is eye opening and provides solutions. Passage of year-round E15 will allow us to shrink the demand gap until we are able to access ultra-low carbon markets, but it isn’t enough to sustain long-term growth. Expanding into ultra-low carbon ethanol markets is essential for long-term viability but requires immediate state policy support to succeed.”
Mueller has warned that without new corn demand, Iowa could face pressures reminiscent of the 1980s farm crisis. Grower groups say the latest funding bill decision only heightens those concerns, as E15 once again becomes entangled in broader political negotiations rather than resolved through permanent legislation.
With the Jan. 30 government shutdown deadline approaching and peak driving season on the horizon, corn growers and ethanol supporters are watching closely to see whether promised votes materialize later this winter or whether E15 will again be deferred. Industry leaders warn that continued inaction risks stalling rural economies, weakening U.S. energy independence, and allowing international competitors to take the lead in the global transition toward cleaner fuels.
