Senators propose immediate end to ethanol credit

[Willinois]

AP Has the article.

Quote:Two senators from ethanol-producing states proposed Thursday to immediately end a tax credit for the corn-based fuel and agreeing to support shifting some of that money to debt reduction.

Sens. Amy Klobuchar, D-Minn., and John Thune, R-S.D., along with ethanol opponent Sen. Dianne Feinstein, D-Calif., have proposed diverting $1.3 billion of the money remaining for the tax break this year to pay for debt reduction. And $668 million will be used for incentives for the ethanol and biofuels industries.

If accepted by the House and the Obama administration, the compromise could provide a quick path to end the ethanol credit as part of budget negotiations between Congress and the White House. The Senate last month adopted an amendment to end the $5 billion subsidy, but the fate of the legislation to which it's attached — a bill renewing a federal economic development program — is uncertain.

The corn industry did a good job of selling us on the idea that their product was the new green alternative fuel. It was never environmentally beneficial, and it promotes damaging industrial farming techniques. Ethanol does its own form of damage to the Gulf Coast through toxic farm chemicals that drain into the Gulf and create a dead zone every year.

We're better off putting research into cellulosic ethanol from other sources like swithgrass. The current subsidies serve no purpose other than subsidizing a market for corn.

[Ikonoklast]

Ethanol was an easy sell to the Corn Belt politicians, but it never was really economically the smart thing to do; if it was viable, it wouldn't have needed the blending credit OR the duty tax on imported ethanol to stay competitive.

Some real political courage displayed on the part of those politicians that have to go back to their constituency and explain their rationale for voting to stop the subsidies.

Ethanol is here to stay, we just need to push the research for a viable cellulosic ethanol production method, that is definitely money well spent.

Just think how far $5 billion in research would have gone, instead of subsidies.

Oh, and the wet spring making for late planting all across the Midwest will certainly have a serious impact on corn yields and prices this year; the numbers for acres planted and projected yields look thin, keeping prices high.

[jaxx]

I read that they are experimenting with using the corn husks as ethenol. Much better than the corn.

[NJMaverick]

Agreed, plus ethanol raises the price of food along with lowering our MPG.