$36+ million headed to Kansas ethanol producers to lower costs, ease pandemic burden

TOPEKA, Kan. (WIBW) - More than $36 million has been given to Kansas ethanol producers to lower surging costs and ease the burden of losses from the COVID-19 pandemic.

The U.S. Department of Agriculture says Acting State Director for Rural Development Kansas Dan Fischer announced that the Department has provided $36.25 million to help lower the costs and support biofuel producers who face unexpected market losses due to the COVID-19 pandemic.

The USDA noted that the funds have been made available through the Biofuel Producer Program, which was created as part of the CARES Act.

“The pandemic disrupted the rural economy through market interruptions,” Fischer said. “The USDA is targeting resources to improve the resiliency of critical markets for Kansas farmers and ranchers.”

The USDA said it has made payments to the maintenance and viability of a significant market for agricultural producers of products like corn, soybean or biomass that supply biofuel production.

The Department said these biofuel producers experienced unexpected market losses on a combined 3.7 billion gallons as a result of the pandemic.

The USDA indicated that the following Kansas biofuel producers received grants:

The USDA noted that the announcement is part of a larger national announcement that includes 25 states and 195 biofuel production facilities.

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