Frustrations rise over ethanol ahead of Trump’s Iowa speech

By Grace Yarrow | 01/27/2026 12:07 PM EST

A failed effort to get an E15 provision into Congress’ funding package left industry groups, farm-state lawmakers and the White House at odds with one another.

FILE - Corn grows in front of an ethanol refinery on July 22, 2021, in Chancellor, S.D. Opponents of planned liquid carbon dioxide pipelines in the Midwest won a victory Wednesday, May 3, 2023, when an Iowa judge ruled that a state law that gives surveyors the right to enter private property is unconstitutional. Pipeline company Navigator CO2 Ventures's planned pipeline would cut through five states — Iowa, Illinois, Minnesota, Nebraska and South Dakota — and carry carbon dioxide from ethanol and fertilizer processors to a site in Illinois. (AP Photo/Stephen Groves, File)

Corn grows in front of an ethanol refinery on July 22, 2021, in Chancellor, South Dakota. Stephen Groves/AP

Tensions remain high over the future of ethanol sales as President Donald Trump prepares to give a highly anticipated speech on energy and the economy in Iowa on Tuesday.

A last-minute push to include a provision green-lighting year-round E15 sales in Congress’ funding package fell apart last week, much to the dismay of struggling corn farmers who were hoping it would open new markets. House Republicans agreed to set up a new energy working group to discuss the path forward for ethanol, potentially in a supplemental package this spring.

Still, the failed effort left lobbyists feeling betrayed by the White House and farm-state lawmakers feeling frustrated with a key agriculture industry group, according to three people granted anonymity to discuss behind-the-scenes conversations.

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The National Corn Growers Association rankled Midwestern Republicans on Wednesday when it dismissed the effectiveness of the new ethanol working group.

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