The Renewable Fuels Association (RFA) welcomed the announcement by President Trump that a trade agreement has been reached between the United States and the European Union (EU). RFA says the EU trade deal is an important step toward opening the market for lower-cost, American-made renewable fuels in the 27 countries represented by the EU.
"We thank President Donald Trump and European Commission President Ursula von der Leyen for reaching this important agreement, and we are encouraged to see U.S. ethanol mentioned as part of the deal," said RFA President and CEO Geoff Cooper. He was commenting on a social media post by USDA Secretary Brooke Rollins who noted that the deal includes the purchase of $750 billion in U.S. energy, including ethanol, and would reduce America's $24 billion agriculture trade deficit with the EU.
"As our nation's corn growers prepare for what is likely to be a record harvest, we stand ready to produce larger volumes of cleaner-burning ethanol and valuable co-products, like distillers grains, for customers around the world," Cooper added. "When markets are open and trade policies are fair, everybody wins. The U.S. ethanol industry looks forward to working with our partners in Europe to continue growing the global production and use of renewable fuels, which are simply more reliable and more affordable than many other energy alternatives."
The EU has been a major importer of U.S. ethanol in recent years, ranking third with 197 million gallons imported last year. The EU's 2024 imports of U.S. ethanol represented a 54 percent increase over 2023. When it comes to distillers grains, the EU ranked sixth last year, purchasing 684 million metric tons of U.S. product, 46 percent above the prior year.
EDITOR’S TAKE:
The trade deal with the EU certainly offers a boost to our country’s energy sector in general, and we are particularly pleased that ethanol is included in the deal. An increase in ethanol exports will provide broader support for corn prices going forward. That, of course, puts more money in the pockets of farmers/ranchers. This deal with the EU is also significant because it puts pressure on other nations, particularly our adversaries, who sell oil, natural gas and renewable fuels into the world market.
While this deal will benefit corn producers in the future, be sure to reach out to them now. Put your inventory on AgTruckTrader.com® so they can clearly see you are a CAD member and take a closer look at what you have in stock. And remember to remind them that the Big Beautiful Bill included retroactive full depreciation of business expenses for items like farm/ranch trucks!
