According to the Renewable Fuels Association sales of ethanol from March through June fell by 1.3 billion gallons compared to the average consumption during March over the previous three years.  This corresponded to a reduced offtake of corn, amounting to 467 million bushels.

Loss of sales translated to a financial shortfall of $3.4 billion with negative effects continuing through the remainder of 2020.

Geoff Cooper, President of the RFS, commented “The analysis again underscores the need for Congress to act expeditiously to deliver emergency relief to the renewable fuels industry.”  The May 2020 CARES Act offered ethanol producers $2.5 billion. Payments were based on 45 cents per gallon for production from January 1st to May 1st for operating plants. Storage of ethanol approaching capacity and operating losses resulted in almost half of the industry ceasing production by April.  Idle plants received 22.5 cents per gallon based on their production during 2019.

Clearly, the corn-based ethanol industry is vulnerable to any downturn in gasoline demand.  The entire ethanol industry that has outlived its reason for existence is based on government mandates and support paid for by all who eat or drive.