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Stalled Farm Bill now includes $1.226 billion cut in ethanol incentives

April 18, 2008

In Washington, negotiations over the stalled Farm Bill have put existing ethanol incentives in peril, according to House Agriculture Committee chairman Collin Peterson. The chairman said that, in order to offset $9.5 billion in increased spending, Senate negotiators had proposed a $0.05 per gallon cut in the ethanol blender tax credit and reductions in other incentives for a total of $1.226 billion in ethanol support cuts.

Earlier this week, the US House of Representatives voted to extend the existing Farm Bill until April 25 to give lawmakers more time to resolve differences between the House and Senate versions of the new Farm Bill, which includes tax breaks and incentives for biofuels. The current law expires on April 18. President Bush has stated that he will not sign legislation extending the current Farm Bill for another year.

The Farm Bill was passed by the Senate in in the fall, while the House version passed in July. Senate Agriculture Committee chairman Tom Harkin said the bill would earmark $1.3 billion for biofuels over the next five years.

The Senate passed an overall funding measure on October 5, but the Agriculture Committee under committee chairman Tom Harkin had been working on specific program allocations until November, which include ethanol tax credits and next-generation biofuel investments. The Senate finance committee previously proposed cutting the ethanol tax credit to 46 cents per gallon.

President Bush has raised the threat of a Farm Bill veto, the first since 1956, over subsidies. Among those in hot dispute is the Brazilian ethanol tariff, which protects US ethanol producers but creates higher prices in the US and retards US ethanol demand growth.

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    Written by Jim Lane · Filed Under Policy, Producer News 

    Comments

    One Response to “Stalled Farm Bill now includes $1.226 billion cut in ethanol incentives”

    1. Dynahog on April 21st, 2008 1:12 pm

      The worst thing the US Congress can do is interfere with The People.

      1. By passing tax incentives, they encouraged The People to take risks and invest THEIR money into enterprises Congress agrued would benefit The People.
      2. By taking those incentives away within 5 months of the 2007 Energy Act being signed by the President, sends a chilling message to all those Risk Takers. This does have a negative impact on investors, and even individual farmers.
      3. Similarly when in good faith, business sign Long Term Off Shore Lease Agreements with the US Government they expected the Government (their government) would honor the agreement. In January 2007, the Dems immediately began attacking these leases signed during the Clinton Administration. Bye Bye America. Within a month, those Big Oil companies were in China developing their CTL and Power technologies with $125 Billion (U.S.) China put on the table.
      4. Again in 2008, these Dems in Congress try to rip the Big Oil Execs for high gas prices. Over and over again. World demand drives up Crude Oil prices, the US is importing Crude Oil. But US Demand is down. The Dems don’t get it! They demand more refineries after Big Oil says refinery capacity hasn’t changed in 20 years. But again the Dems don’t listen. Big Oil says they can’t get the Permits for refineries. Oh, People. Wake up!

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