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In boon for farmers, Trump lifts restrictions on ethanol

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Posted at 7:24 AM, Oct 10, 2018
and last updated 2018-10-10 07:24:13-04

The Trump administration is moving to allow year-round sales of gasoline with higher blends of ethanol, a boon for Iowa and other farm states that have pushed for greater sales of the corn-based fuel.

On a Tuesday trip to Iowa, President Donald Trump announced he is lifting a federal ban on summer sales of high-ethanol blends.

Earlier at the White House, Trump said: "It's an amazing substance. You look at the Indy cars. They run 100 percent on ethanol." He said he wants more energy production and to help farmers and refiners.

The long-expected announcement is something of a reward to Iowa Sen. Chuck Grassley, who as Senate Judiciary Committee chairman led a contentious but successful fight to confirm Brett Kavanaugh to the Supreme Court.

Farm state producers of soybeans and other commodities have been impacted by rounds of tit-for-tat economic trade tariffs between the U.S. and China.