Leaders Favor Ethanol Subsidies

A high-profile pair say the U.S. government should continue its commitment to ethanol and lift tariffs on international imports, according to a report by the Sioux Falls, SD, Argus Leader.

Jeff Broin, CEO at Poet, a Sioux Falls-based ethanol company, and former South Dakota Sen. Tom Daschle said the federal government should extend ethanol subsidies and pay them to ethanol producers rather than the oil companies that blend ethanol with their gas. Daschle, who was a co-chairman for President-elect Barack Obama’s national campaign and is expected to be named his secretary of Health and Human Services, said he was not speaking on Obama’s behalf.

A 52-cent-per-gallon federal ethanol subsidy is set to expire in a year, but Daschle and Broin said Congress should extend it for five years.

U.S. ethanol producers are helping American drivers become less dependent on oil from foreign countries, some of them hostile to the U.S., Broin said during a Capitol Hill forum sponsored by the American Council on Renewable Energy. This success means the U.S. ethanol market will be saturated by the end of next year unless Congress and automakers act quickly to raise the limit on the amount of ethanol that can be used in conventional cars and trucks to 15 percent or 20 percent, he said. Federal law and auto warranties prohibit blends higher than 10 percent for conventional vehicles and 85 percent for flex-fuel vehicles.

Investors will not put their money into researching and developing cellulosic ethanol, which is made from nonedible woody plant materials, if the market for ethanol isn’t there, Broin said. Today, most ethanol is made from corn.

(Source: Argus Leader)

Topics:

Leave a Reply

One comment on “Leaders Favor Ethanol Subsidies

  1. Good to read that Jeff Broin and Tom Daschle now advocate lifting the tariff on imports of ethanol from Brazil, but it is clear that they are still willing to rob whatever money from Peter (U.S. taxpayers) Paul (the ethanol industry) demands to keep it afloat and growing. The VEETC (now $0.45 per gallon, not $0.52 per gallon), if (and the one for biodiesel) it keeps being extended, it will cost taxpayers more than $7 billion a year by 2015. Add to that the $3 billion a year in subsidies to cellulosic producers, and the total becomes $10 billion per year. By 2022 it will be $28 billion per year.

Management Stories

StewardshipOgallala Aquifer At Risk
September 4, 2015
The Ogallala Aquifer, with total water storage capacity about equal to that of Lake Huron in the Midwest, is the Read More
Valley Irrigation variable rate irrigation
StewardshipNebraska Getting Water Conservation Right
September 4, 2015
A precipitation map of Nebraska looks startlingly like a rainbow, with each colored band marking a different level of rainfall. Read More
ManagementReviewing MAGIE 2015
September 2, 2015
CropLife Editor Eric Sfiligoj talks what he saw at the recent Midwest AG Industries Exposition (MAGIE) show. Read More
StewardshipBee Buffer Strip Initiative Seeks 100 Ohio Farmers
August 31, 2015
The U.S. Bee Buffer Project, an initiative of the Pollinator Partnership (P2), Burt’s Bees and The Burt’s Bees Greater Good Read More
Top 100 Articles
Crop InputsLand ‘O Lakes, United Suppliers Finalize Merger
August 24, 2015
According to a press release on August 24, owners of United Suppliers, Inc. and members of Land O’Lakes, Inc. “have Read More
West Central Cooperative, Jefferson, IA
CropLife 100Iowa Cooperatives To Explore Unification
August 19, 2015
The boards of directors at two of Iowa’s leading farmer-owned cooperatives yesterday signed a letter of intent to study the Read More
CropLife 100Southern States Coop Hosting Drone Flight This Friday
August 3, 2015
Southern States Cooperative — No. 9 on the CropLife 100 — is hosting an FAA-approved drone demonstration at Grandview Farms Read More
CropLife 100Aligned Ag Distributors Adds Four New Owners
July 30, 2015
Aligned Ag Distributors LLC has announced the addition of four new customer/owners to Franklin Holding Co. LLC. They are: The Read More
CropLife 100Pinnacle Purchases California-Based Specialty Crops Retailer
July 20, 2015
Pinnacle Agriculture Holdings has successfully acquired California-based NH3 Service Co.  Operating as part of Pinnacle’s Performance Agriculture brand, the new locations Read More
Asmus Farm Supply liquid fertilizer facility features 20,000 square feet
CropLife 100Slideshow: Asmus Farm Supply Shows Off Its New Liquid Fertilizer Facility
July 15, 2015
Asmus Farm Supply, Rake, IA, recently added a new liquid fertilizer facility to its company operations. The new liquid fertilizer Read More
Latest News
StewardshipOgallala Aquifer At Risk
September 4, 2015
The Ogallala Aquifer, with total water storage capacity about equal to that of Lake Huron in the Midwest, is the Read More
Valley Irrigation variable rate irrigation
StewardshipNebraska Getting Water Conservation Right
September 4, 2015
A precipitation map of Nebraska looks startlingly like a rainbow, with each colored band marking a different level of rainfall. Read More
Crop InputsBayer CropScience: A Decade Of Innovation
September 3, 2015
BLAMS! It’s not a sound effect from the pages of a Superhero comic book. Instead this nifty acronym is used Read More
ManagementReviewing MAGIE 2015
September 2, 2015
CropLife Editor Eric Sfiligoj talks what he saw at the recent Midwest AG Industries Exposition (MAGIE) show. Read More
Melissa Olds Dow AgroSciences
Crop InputsDow AgroSciences: Highlighting The Past, Present & …
September 2, 2015
In general, media events held by large agricultural suppliers tend to focus primarily on what plans the company has in Read More
Mobile tablet
OpinionTaking Data Head On
September 2, 2015
As you read this column, I’m hoping that if you picked up the phone and gave me a call, you’d Read More
Young soybean field
Industry NewsArysta LifeScience Announces New Business Unit Head For…
September 1, 2015
Arysta LifeScience North America announces the addition of Rico Christensen, Business Unit Head, North America. Christensen will have responsibility for Read More
Wilbur Ellis Pink Soybean Seed Treatment
Crop InputsWilbur-Ellis Goes Pink With Soybean Seed Treatments For…
September 1, 2015
This past year, proceeds of pink-dyed soybeans treated and sold to Wilbur-Ellis seed customers in Chester, SD, went to two Read More
SprayersNORAC Active Wing Roll Slated For More Sprayers
September 1, 2015
NORAC Systems, a member of the Topcon Positioning Group, announces the release of Active Wing Roll for RoGator, Apache, New Read More
Syngenta Sign
FungicidesSyngenta’s Newest Fungicide Receives EPA Approval
September 1, 2015
Syngenta announced today that its newest succinate dehydrogenase inhibitor (SDHI) fungicide – Solatenol – has received registration from EPA and Read More
Flooded corn in Indiana
Crop InputsDelaying The Fertilizer Decision
September 1, 2015
Comments gathered from several retailers recently evidenced a classic good-news-bad-news scenario. Good news is prices and supplies of nitrogen, phosphate, Read More
StewardshipBee Buffer Strip Initiative Seeks 100 Ohio Farmers
August 31, 2015
The U.S. Bee Buffer Project, an initiative of the Pollinator Partnership (P2), Burt’s Bees and The Burt’s Bees Greater Good Read More
2015 ShowStopper Award, MAGIE
EquipmentA ShowStopper From Case IH: The Patriot 2250
August 31, 2015
For nine years now, visitors to the yearly Midwest AG Industries Exposition (MAGIE) show have been tasked with not only Read More
Crop InputsMonsanto, FMC Expand Roundup Ready PLUS Platform
August 31, 2015
FMC Corp. and Monsanto Co. announced today an expanded agreement to continue their participation in the Roundup Ready PLUS Crop Read More
Deere Nutrient Applicator
Eric SfiligojThe Good & Bad News From MAGIE
August 31, 2015
As I write this column, I’ve just returned from the annual Midwest AG Industries (MAGIE) trade show in Bloomington, IL. Read More
CPS Morenci receiving its 4R certification
StewardshipCPS Morenci Becomes First Michigan Facility Certified I…
August 31, 2015
The 4R Nutrient Stewardship Certification Program has announced that Crop Production Services, Inc.’s facility located in Morenci, MI, has been Read More
EquipmentDeere Announces Soucy Track Distribution Alliance
August 28, 2015
John Deere announces an alliance with Soucy Track to sell and distribute products through the John Deere dealer channel. “This Read More
FertilizerFall-Applied Phosphorus: A Rooted Investment
August 28, 2015
As commodity prices decrease and input prices continue to rise, farmers are seeking more efficient strategies for meeting a high Read More