Ethanol Subsidy Extended

Congressional negotiators have agreed to extend the 45-cent-per-gallon subsidy for ethanol for one year and also continue a tariff on imports of the biofuel, said Sen. Chuck Grassley, R-IA.

The tariff will continue at 54 cents per gallon through 2011, said Grassley, who announced that the provisions would be included in tax legislation worked out with the White House.

The bill also would resurrect and extend for another year the $1-a-gallon subsidy for biodiesel that expired at the end of 2009. Biodiesel production slowed significantly this year, and many plants shut down.

The ethanol subsidy and tariff were due to expire at the end of this month.

Extending these provisions "will boost jobs and investment in the alternative energy sector, exactly when the economy needs a real shot in the arm," Grassley said.

Given the growing concern about deficit spending and the success of the tea party movement in last month’s congressional elections, critics of the ethanol industry thought they had their best chance ever this year to kill the subsidy and tariff. But Grassley, the ranking Republican on the Senate Finance Committee, was well-positioned to defend the industry. The ethanol subsidies are provided through tax credits.

A top executive in the ethanol industry said a one-year extension of the subsidy would buy some time for producers to persuade Congress to put money into installing the pumps and pipelines needed to expand the market for the biofuel.

"We can’t live without that incentive today," said Jeff Broin, president and CEO of Poet LLC.

Broin helped found an industry trade group, Growth Energy, that surprised observers this summer by proposing to phase out the subsidy and to shift the money into infrastructure needs.

Other groups, including the Renewable Fuels Association, said the proposal was premature. Growth Energy subsequently endorsed the idea of a short-term extension of the tax credit but still argues that the money eventually should be shifted into retrofitting service station pumps and financing pipelines. The group’s plan also calls for requiring automakers to equip all new cars and trucks to run on ethanol as well as gasoline.

(Source: DesMoinesRegister.com)

Topics:

Leave a Reply

Crop Inputs Stories

MicronutrientsMicronutrients Going Macro
September 9, 2014
Between 2014’s fantastic growing conditions and a heightened awareness on plant nutrition, the major players in micronutrients are gearing up for another big year. Read More
FertilizerFall Fertility 2014: Forecasting Fertilizer Use
September 7, 2014
Great crops this year have tapped the soil, and fall work is definitely called for, but how challenging will that get? Read More
FungicidesSudden Death Syndrome, Brown Stem Rot Reported In Indiana Soybeans
September 3, 2014
Farmers and retailers should be watching for symptoms of these two diseases over the next few weeks as they are best managed through preventative methods. Read More
HerbicidesScouting Key To Next Season’s Soybean Herbicide Program
August 12, 2014
When growing soybeans, growers need to think ahead to stay one step ahead of weeds. That means examining weed threats and evaluating which herbicides work best. Read More

Trending Articles

Matt Hopkins15 Best New Agriculture Apps Worth Downloading In 2014
December 16, 2013
These latest agriculture apps are sure to help ag professionals do their jobs more efficiently in 2014 and beyond. Read More
Seed/BiotechMonsanto Offers New Support For Ferguson, Area Communities
October 8, 2014
Monsanto Co. has committed $1 million in new support for several collaborative efforts in Ferguson, MO, and surrounding communities in North St. Louis County. Read More
Seed/BiotechUnapproved Genetically Modified Wheat Found In Montana
October 3, 2014
USDA reports that one year after discovery of Monsanto's unapproved wheat in a single Oregon field disrupted U.S. wheat export sales, the GMO wheat has again been found in Montana. Read More
Equipment2014 Product Of The Year Voting
September 19, 2014
Many new products were introduced to the ag retail marketplace this year. From this group, CropLife IRON and its consulting partners have selected five finalists for the Product of the Year award. Please cast your vote today to help us determine the winner. Read More
FertilizerFall Fertility 2014: Forecasting Fertilizer Use
September 7, 2014
Great crops this year have tapped the soil, and fall work is definitely called for, but how challenging will that get? Read More
CropLife 100CHS To Build $3 Billion Fertilizer Plant In North Dakota
September 5, 2014
The fertilizer plant in Spiritwood will be the single largest investment in CHS history, as well as the single largest private investment project ever undertaken in North Dakota. Read More

Latest News

Seed/BiotechEPA Approves Dow’s Enlist Duo Herbicide
October 15, 2014
The Enlist Weed Control System, breakthrough technology to fight resistant and tough weeds, has received the long-awaited green light from federal regulatory authorities. Read More
MicronutrientsGypsum On Farms Could Help Keep Water Clean, Not Green
October 14, 2014
Gypsum, which has roots in the past as a farm soil treatment, also may have a bright future, and not just as a booster of crops but also as a protector of water. Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Crop InputsVerdesian Grows Sales Staff
October 14, 2014
The new account managers will drive sales growth and support relationships with key customers in the plant nutrition and seed treatment and inoculants product categories. Read More
WebinarsUpcoming Webinars
October 14, 2014
Register for one of our upcoming Webinars or access our archive of past Webinars to view recordings of presentations that may be of interest to you. Read More
CropLife 100The Andersons Purchases Six Grain Elevators, Four Agron…
October 14, 2014
The Andersons has acquired Auburn Bean and Grain of Auburn, MI, which will increase the storage capacity of its Grain Group by about 13%. Read More
StewardshipThree Ohio Ag Retailers Honored With 4R Certification
October 13, 2014
The 4R Nutrient Stewardship Certification Program has announced its first three agriculture nutrient service providers to achieve certified status. Read More
Eric SfiligojEntering Agriculture’s New Phase
October 13, 2014
The market’s giddy ride the past few years might be coming to an end in 2015, warns one industry insider. Read More
Eric SfiligojWar And Green Peace
October 11, 2014
A one-time member of Green Peace recently explained why he left the organization after 15 years. Read More
StewardshipCover Crops Add To Farm Sustainability
October 10, 2014
Farmers nationwide find cover crops to be a tool that helps groundwater, prevents erosion, builds soil quality and complements existing best management practices. Read More
EquipmentMeeting Changing Liquid Storage Needs
October 10, 2014
Tank and containment choices are expanding with shifts in farming practices and the economy. Read More
StewardshipEDF Launches Initiative To Reduce Fertilizer Pollution …
October 9, 2014
The effort will engage farmers and businesses throughout the supply chain to transform the way fertilizer-dependent grain crops are grown and sourced. Read More
ManagementMACA 2014: The State Of The Agricultural Industry, And …
October 9, 2014
The trade association’s annual gathering featured speakers from across agriculture and beyond. Read More
FertilizerASA: Drainage Tiles A Big Part Of Phosphorus Problem
October 8, 2014
A pair of studies published in the Journal of Environmental Quality today indicate that the buried network of drainage pipes known as the tile system can carry away as much phosphorus as surface runoff. Read More
FertilizerCompass Minerals Debuts Phosphorus Blend For 2015
October 8, 2014
The makers of Wolf Trax DDP Nutrients designed Nu-Trax P+ with the CropStart Nutrient Package, a blend of phosphorus (25%), zinc (20%), manganese (5%) and nitrogen (4%). Read More
ManagementIndiana Certified Crop Advisor Of The Year Nominations …
October 8, 2014
Indiana Farm Bureau and the Indiana Certified Crop Adviser Program are seeking nominations for the Indiana Certified Crop Adviser of the Year Award. Read More
Seed/BiotechMonsanto Offers New Support For Ferguson, Area Communit…
October 8, 2014
Monsanto Co. has committed $1 million in new support for several collaborative efforts in Ferguson, MO, and surrounding communities in North St. Louis County. Read More
Precision AgGoogle Glass: New Tool For Ag
October 8, 2014
New wearable smart technologies such as Google Glass show potential to greatly impact how we accomplish the business of feeding the world. Read More
FertilizerJ. R. Simplot To Build New Ammonia Plant In Rock Spring…
October 7, 2014
The new plant will supply both the Rock Springs, WY, and Pocatello, ID, phosphate fertilizer production locations while having the capacity to meet the company’s next phase of anticipated phosphate expansion plans at Rock Springs. Read More