At the American Seed Trade Association (ASTA) CSS & Seed Expo this week, noted agricultural economist Dan Basse with Ag Resource Company once again provided his global outlook for agriculture, which includes the outlook for biofuels.
Basse noted that he doesn’t believe the Biodiesel Tax Credit, which expires on December 31, 2016, will be extended before the end of the year. However, he said the incoming Trump Administration has suggested this legislation will be wrapped up with other tax legislation and we could possibly see something passed towards the end of the first quarter next year.
Basse believes that President Trump will be very good for biofuels. “He is promising biofuel policies that will be more open,” said Basse. “I think ethanol has a secure place in the gas tank at a ten percent blend rate.” He adds, “It is surely a mature market unless the government wants to legislate higher blend rates in the future.”
By 2022-2023 Basse believes anywhere between 20-25 percent of the U.S. auto fleet will be electric. “Everyone is coming out with an electric car. We believe the efficiency, the ability to maybe have some driverless opportunities will lead us in that direction. So renewables, having solar panels on your house, plugging your car in at night or running your heater, will lead to decarbonization in the world sometime in the vicinity of 2027 to 2032.”
Basse talks more about renewables in this interview covering the ag outlook for 2017: Interview with Dan Basse, Ag Resource Company