Washington: The US government on Friday unveiled a set of measures to support the agriculture sector, including higher ethanol blending requirements, as supply disruptions linked to the Iran conflict continue to push up costs, The Hill reported.
Officials said the volume of biofuels such as ethanol to be mixed with fuel will be increased for 2026 and 2027. The Environmental Protection Agency is in the process of finalising these targets, which are expected to be the highest set under the programme so far.
The move comes as shipping disruptions through the Strait of Hormuz have led to a rise in fuel and fertiliser prices, adding to the financial strain on farmers.
Along with the increase in ethanol use, the government announced steps such as providing loan guarantees and easing certain pollution monitoring requirements. These measures are aimed at reducing the burden on farmers and related industries.
President Donald Trump, speaking at a White House event, said the steps are intended to ensure fair conditions for farmers. He also urged lawmakers to remove restrictions on the sale of higher-ethanol fuel during the summer, an issue that has been under discussion in Congress.
The administration is also relaxing rules related to pollution monitoring equipment used in tractors and other farm machinery. Officials said this could lower costs for the sector by about $14 billion.
In addition, the Small Business Administration will extend loan guarantees to support agriculture and logistics businesses, including those involved in producing food items and transporting perishable goods.
The announcement comes at a time when rising energy and food prices are putting pressure on households and businesses. Recent data shows that food prices have increased faster than overall inflation.
The measures also highlight the government’s effort to support farmers, even as policies related to biofuels continue to see differing views across regions.
Separately, the administration has decided to withdraw an earlier plan that expanded biofuel credits for use in electric vehicles.
