To amend the Commodity Credit Corporation Charter Act to exclude crops used to produce biofuel with respect to an agricultural commodity.
- Sponsor
- Rep. Perry, Scott [R-PA-10]
- Committees
- Agriculture Committee (primary)
- Last action
- May 12, 2026
Bottom line
This bill removes federal financial support provided through the Commodity Credit Corporation for crops used in biofuel production and related infrastructure.
What it actually does
This bill amends Section 5 of the Commodity Credit Corporation Charter Act to explicitly exclude crops used to produce biofuel, along with any related infrastructure, from the definition of an "agricultural commodity" eligible for support. This means the Commodity Credit Corporation (CCC) would no longer be authorized to provide loans, purchases, or payments for these specific crops or their associated infrastructure, similar to how tobacco is currently excluded.
Proponents argue
Supporters argue that removing biofuel crops from CCC support promotes free-market principles, reduces government intervention in agricultural markets, and eliminates subsidies for an industry that should be self-sustaining. They contend that this change would foster greater efficiency and innovation while freeing up CCC resources for other traditional agricultural support.
Opponents contend
Opponents would contend that this bill undermines the renewable energy sector, potentially harming farmers who grow biofuel crops and increasing reliance on fossil fuels. They might argue that federal support for biofuel crops is crucial for maintaining energy independence, promoting environmental sustainability, and supporting rural economic development.
The bill text is extremely short and straightforward, allowing ample time for a comprehensive evaluation of its direct implications.
Section 1
Exclusion of Biofuel Crops and Related Infrastructure from Commodity Credit Corporation Support
This provision amends the Commodity Credit Corporation Charter Act by inserting specific language that excludes "crops used to produce biofuel (including any infrastructure relating to such crops)" from the types of agricultural commodities for which the CCC can provide support. This places biofuel crops and their infrastructure in the same category as tobacco, meaning they would no longer be eligible for CCC loans, purchases, or payments.
Supporters argue
Supporters argue that this exclusion promotes market-driven agriculture, reducing government distortion of commodity prices and allowing the biofuel industry to compete without federal subsidies. They believe it fosters greater efficiency and innovation in the agricultural sector by removing artificial market incentives.
Critics contend
Opponents contend that removing this support could destabilize the biofuel industry, which plays a vital role in energy security and rural economies. They argue that federal support is crucial for maintaining a diversified agricultural base, promoting renewable energy sources, and achieving environmental goals.
Tradeoffs
This provision navigates the tension between promoting free-market principles and reducing government spending versus supporting domestic energy production, rural economic stability, and environmental benefits associated with biofuels.