ATLANTIC, Iowa (DTN) -- With concerns about potential retaliatory tariffs looming for farmers, U.S. Agriculture Secretary Brooke Rollins on Monday sought to champion President Donald Trump's support for farmers by highlighting investments in biofuels to focus on domestic use of products.

Rollins started Monday with a tour of a 150-million-gallon ethanol plant just outside Atlantic, Iowa, and used it to highlight E15 policies and $537 million investment in biofuel infrastructure. Rollins and Iowa officials had a full schedule of events on Monday, including an evening dinner with Iowa agricultural leaders.

Rollins' visit comes two days before Trump announces his plan for a new set of global tariffs on U.S. trading partners. Trump now will announce those tariffs in a Rose Garden event on Wednesday in Washington.

POTENTIAL PAYMENTS FOR FARMERS

There are a lot of concerns that U.S. farmers are going to get caught in a wave of retaliatory tariffs going into planting season. The New York Times reported on Monday that the White House already is talking about potential payments to farmers, similar to the $23 billion provided to farmers in 2018-19 during the tariff war under Trump's first administration.

Rollins said she hopes USDA will not need to create a new trade-aid program similar to the Market Facilitation Program (MFP) in Trump's first term.

"My hope and prayer and goal is that we don't have to use those again, that in fact, these tariff renegotiations will be so positive on the front end for our farmers and our ranchers and our ag community," Rollins said of aid checks. "And I have been very involved ... in those discussions."

Still, Rollins acknowledged USDA is planning for the possibility of trade-aid payments. "We are ensuring that we are set up, that we have the infrastructure ready to make whole again what that will look like. But right now, it is to be determined."

On the timing of aid payments or other measures, Rollins said, "It really depends on what April 2 looks like, and what the president will be announcing on April 2."

Rollins noted tariffs have always been a driver for Trump's policies -- "a big part of his toolkit" -- and the drive to reinvigorate the country and the economy.

FUNDING FOR BIOFUEL INFRASTRUCTURE PROJECTS

At the Elite Octane ethanol plant, Rollins announced $537 million in funding for 543 biofuel infrastructure projects across 29 states under the Higher Blends Infrastructure Incentive Program (HBIIP).

The HBIIP provides grants up to 75% of a project cost, up to $5 million, to help fuel stations and others convert to selling higher blends of ethanol and biodiesel. The program was created in 2020 under the first Trump administration, but it also saw funding increased under the Biden administration because of the Inflation Reduction Act.

Rollins said the announcement reflects Trump's commitment to farmers, "especially here in Iowa. At USDA, we are aggressively exploring ways to unleash American energy and incentivize homegrown biofuel production."

Trump's executive order on energy in January highlighted promoting E15. Rollins said she also had heard from agricultural groups and Iowa lawmakers about touting E15.

"Here in the heartland, here in the very heart of America, what you all stand for, what this amazing business behind me stands for, what our farmers and ranchers stand for, is how we truly save the future of the country. And we do believe that E15 is a big part of that we're working day in and day out, not just across the executive branch, but obviously in the legislative branch too, through Congress, to ensure that we can do just that," Rollins said.

BIOFUELS POLICY ON HIGHER BLENDS

Rollins and Iowa leaders on Monday championed the need for higher biofuel blends to support the rural economy, but Rollins rejected the notion that the driver for biofuels policy on a federal level is that ethanol and biodiesel have lower greenhouse gas emissions than gasoline. A 2017 USDA study highlighted ethanol has 43% fewer emissions than gasoline.

"The president has been very clear since 2015 when he came down the escalator that the climate-driven Green New Deal, cutting deals with the Paris Climate Accord, cutting deals with Europe and all across the world, that basically compromises America at every turn," Rollins said.

Rollins dismissed federal funding for other forms of renewable energy such as solar, which is driven heavily by solar panels and other equipment manufactured in China, she said.

"Listen, I'm from Texas. I mean, energy is a big part of our world down in Texas and will continue to be. So, I think that it's important to realize that the importance of biofuels, the importance of ethanol, is a lot more than just bringing down greenhouse gases."

Rollins said the driver for biofuel policies should be to reflect lower emissions than gasoline.

"The idea of ethanol and our corn growers ... and our soybean growers, is to diversify our energy to allow us to become energy independent again, which, by the way, under the last administration, rolled back and as part of a larger national security effort, while at the same time supporting our incredible farmers and ranchers across this country," Rollins said.

Nick Bowdish, president and CEO of Elite Octane, touted the need for a legislative fix for E15 and boosting the Renewable Fuel Standard's blend requirements -- Renewable Volume Obligations (RVOs) -- as well as changing rules at EPA to allow retailers to blend E15 without needing new infrastructure.

"We're just very, very bullish on the next three years with President Trump leading the way. The seeds of policy change that are going to drive profitability for our corn and soybean farmers in this state are going to be biofuels," said Bowdish.

"Get the federal government out of the way," Bowdish said, adding, "Pumps and pipes are fine. Just let the product flow." Speaking to reporters, Bowdish acknowledged concerns for biofuel producers over tariffs as well. About 1.9 billion gallons of ethanol are exported, of which about 1 billion gallons are exported to Canada.

HIGHER BIOFUEL BLENDS WANTED

Still, Bowdish said a key message is that corn and soybean farmers can make up for possible lost ground in exports with higher biofuel blends. Increasing ethanol blends from 10% nationwide to 15% could mean roughly 2 billion bushels of added corn demand, Bowdish noted.

"If the president needs to have some tough conversations with some of these foreign markets, including markets that our product is going into, he can do that in a way without leaving behind the corn and soybean farmers," Bowdish said. "And what his administration needs to do is open up biofuel demand here at home."

As of now, seven Midwest states -- Illinois, Iowa, Minnesota, Missouri, Nebraska and Wisconsin -- are allowed to blend 15% ethanol year-round starting April 28. Ohio, South Dakota and Kansas could come online in 2026. There was a provision in a funding bill in Congress back in December to allow nationwide E15, but the provision was pulled before the bill passed. At the moment, it is unclear if Congress will vote on a nationwide E15 bill.

One of the mistakes of the Biden administration, Bowdish said, was not embracing biofuel production. Policies such as the Renewable Fuel Standard that focuses on lowering greenhouse gas emissions are just one of advantages ethanol has over gasoline. Ethanol burns cleaner but also is cheaper than gasoline.

"Every gallon we blend of ethanol into gasoline lowers the costs for the consumer," Bowdish said. "The consumer wins. It's American energy. It's America first, it's American corn being sold to American consumers."

NEW TRADE MARKETS SOUGHT

Along with biofuels, Rollins hopes to open more trade in new markets. On Friday, USDA announced Rollins would travel to Brazil, India, Japan, Peru, United Kingdom and Vietnam in the next six months to press for more agricultural trade.

Rollins visited the ethanol plant with Iowa Gov. Kim Reynolds, Iowa Secretary of Agriculture Mike Naig, Rep. Mariannette Miller-Meeks, Rep. Zach Nunn and Sen. Joni Ernst, all fellow Republicans.

Ernst, a member of the Senate Agriculture Committee, praised Rollins for coming to Iowa, saying she and Sen. Chuck Grassley, R-Iowa, were shut out of communications with the last administration. Ernst said she and Grassley have already met with Rollins and EPA Administrator Lee Zeldin, "talking about all ag and all regulations. So again, President Trump is already making a difference for our farmers, and the secretary and the administrator are listening to us and our ideas."

Reynolds, as she left the press conference added, "The Biden administration did exactly zero for biofuels."

The lawmakers also said they are expecting to get a farm bill done this year and blamed the Biden administration and former Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., for not getting a farm bill done last year.

See "Biofuels to Receive $537 Million to Expand Markets for Higher Blends" her: https://www.dtnpf.com/….

Also see "Ag Secretary Uses Purse Strings to Press Culture Wars in States" here: https://www.dtnpf.com/….

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