Ethanol producer says government stiffed it out of funding

Covid-era payments intended to help industry survive pandemic downturn

An Onida-based ethanol company is asking a federal judge to award it more than $2 million from the government, alleging it was shortchanged by the Department of Agriculture.

Ringneck Energy argues USDA owed the money as part of a federal program that Congress passed to help ethanol companies endure shortfalls during the Covid-19 pandemic. The pandemic in 2020 reduced demand for ethanol and gasoline, as people around much of the country were ordered to stay home.

Congress directed the department to make $700 million available to eligible biofuels companies like Ringneck. The program allowed biofuels companies to qualify for payments based on the difference in 2020 production versus 2019, or through lost profits on contractual commitments.

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