Tesla vs. Iowa: Is the Automaker Poised to Battle Farmers?
There's very little more important to Iowans than our farmers. We do love our Hawkeyes or Cyclones, of course, but at the end of the day, it's Iowa farmers that have propelled the state into economic success for decades. Our main crop? Corn. Lately, corn prices have soared. A bushel costs twice what it did last year according to a Wall Street Journal article. While this is good news short-term for Iowa farmers, the future need for ethanol is very much in flux.
Tesla wants in on the U.S. renewable fuel credit market
Back in the mid-2000s, US President George W. Bush boosted the Renewable Fuel Standard Program or RFS, with the hope of boosting rural America and moving the country away from imported oil. As you might imagine given our dependence on fuel, especially at that time. Without going on about what the renewable credit market is all about, just know it's been dominated by ethanol producers - which Iowa has a great number of.
Now it appears car maker Tesla is looking to enter the renewable credit market. This could reshape the renewable credit market, as President Biden has been pushing his zero-emission goals hard. This would also open the door for other electric vehicle makers to apply for renewable credits.
What would this mean for Iowa farmers?
If Tesla is granted renewable fuel credits by the Biden Administration, Iowa farmers could easily view Tesla's entry as the Biden White House prioritizing electric vehicles over biofuels as a way to combat climate change.
You can read more on this story from Reuters here.
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