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Re:

Broin: Expand Ethanol to Help Farmers Avoid Hard Times

In a 2015 interview, POET executive Jeff Broin argued that ethanol expansion could support corn demand and rural investment. The historical figures and claims need to be read in that context.
From TheFinanceBase Team3 min to read
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In a 2015 interview, POET executive Jeff Broin argued that expanding ethanol production could help absorb growing corn supplies and support rural investment. His case rested on ethanol’s place in the corn market, possible growth in cellulosic fuel, and continued federal policy support. Those were advocacy claims, not proof that ethanol expansion caused higher farm income or land values.

What Broin argued in 2015

Dan Looker’s April 24, 2015, Successful Farming interview presented Broin as POET’s founder and executive chairman and a co-chairman of Growth Energy. He said farmers had become less aware of ethanol’s importance: “I think some farmers understand the importance of ethanol. I think that more understood it 15 or 20 years ago than understand it today,” he told Agriculture.com.

His economic argument was that crop yields and corn supply were growing, while existing uses might not absorb future production. Broin believed expanding ethanol use—both by producing more fuel and increasing ethanol’s share in gasoline—could help balance supply and demand for corn. That is his reasoning, rather than an independently demonstrated forecast or causal finding.

Why corn use was central to the case

As reported by Successful Farming in 2015, USDA projected that ethanol and its byproducts would account for 5.2 billion bushels of corn in the then-current marketing year, compared with 5.25 billion bushels for livestock feed and residual use. The figures show ethanol was already a large corn-use market at the time; they do not establish what expansion would do to prices, farm income, or household finances.

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The interview also said U.S. ethanol use exceeded 13 billion gallons in 2014. It estimated that following the original Renewable Fuel Standard (RFS) goals would imply a corn-ethanol mandate of about 15 billion gallons for 2015. Both figures describe the historical context of the interview, not current use or a present-day federal requirement.

Grain ethanol and cellulosic ethanol were different parts of the proposal

Grain-based ethanol

Broin’s near-term argument focused on using more corn to make fuel. He supported a higher ethanol share in gasoline and growth in demand, including through E15 markets that were emerging in 2015. The interview does not establish today’s E15 availability or describe current market conditions.

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Cellulosic ethanol

Cellulosic ethanol uses plant material other than the grain itself, such as agricultural residues. Successful Farming reported that POET-DSM’s Emmetsburg facility then had 20 million gallons of capacity, with a planned ramp-up to 25 million, while Quad County Corn Processors’ Galva bolt-on plant had 2 million gallons of capacity. These are capacities reported in 2015, not evidence of the facilities’ current operating status or output.

Broin also said: “The U.S. currently has a billion tons of cellulose that goes to waste every year, that could produce 80 billion gallons of fuel, which is enough to replace our imports of oil for automobiles.” The one-billion-ton and 80-billion-gallon quantities are his estimate as quoted in the interview; the article does not independently validate them.

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Why policy mattered to Broin

The interview took place during a 2015 debate over EPA’s renewable volume obligations (RVOs) under the RFS, with expected EPA action in June. Broin argued that sustained support for both grain and cellulosic ethanol could keep investment and jobs in the United States rather than see plants built elsewhere. He said: “EPA needs to continue to show support for both grain and cellulosic ethanol, or there’s a high probability these plants could be built somewhere else. America and rural America will miss the opportunity to create the jobs and the revenue here.” This was his policy position in that debate, not a description of current rules or a proven forecast of where investment would go.

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What the interview does—and does not—show about farm finances

Broin linked ethanol-supported commodity markets to more than a trillion dollars in increased land values over seven years. That is his claim, not an independently established estimate of ethanol’s causal effect. The interview places a graph of ethanol production alongside a graph showing farm income beginning to fall; it says the income graph was based on USDA data published by the Congressional Research Service, but does not identify the underlying report with a direct link. A trend occurring alongside another trend is not, by itself, proof that one caused the other.

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  • SafetyPour Bottle Cap: Patent-pending SafetyPour technology includes a CPSC-compliant flame-mitigation device for controlled transfer into a cool fuel reservoir. Designed to help reduce splashing, overpouring, and accidental flame exposure during handling.
  • Clean Burning Bio Ethanol Liquid Fuel: Smokeless, odorless, and ash-free burn with minimal soot or residue when used as directed. A practical ethanol fuel option for indoor and outdoor ethanol-powered burners.
  • 1 Liter Bottle, Clean and Convenient: Each 1 liter bottle provides multiple hours of burn time per fill. The compact format stores easily at home or on the patio, making it a practical refill solution for your bio ethanol fuel fireplace.
  • Important Safety Information: CPSC compliance documentation available. Never pour into a lit, hot, warm, or smoking burner. Allow burner to cool completely before adding fuel. Keep away from heat, sparks, open flames, children, and pets.

For a personal-finance reader, the distinction matters: a larger market for a crop may be relevant to farm revenues and rural investment, but the interview does not quantify how benefits or costs would be distributed among farmers, landowners, consumers, or taxpayers. Nor does it provide a balanced assessment of emissions, food-versus-fuel concerns, or subsequent policy and market outcomes. Its strongest value is as a record of one industry leader’s case for expansion in 2015.

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