With the end of 2011 came the end of the federal tax credit for ethanol, ending an era in which the federal government provided more than 20-billion dollars in subsidies to help grow the industry. Some say the tax credit’s end is remarkable because it comes at the peak of the political season in Iowa, where corn is king.
Dean Taylor, a former president of the Iowa Corn Growers Association, says – we are in a fairly prosperous period for agriculture, therefore, agriculture has not been as much of a touchstone for presidential candidates this time around. Looking ahead, Taylor says the loss of the tax credit – won’t be fatal as long as the demand for ethanol and gasoline remains strong.
Michal Rosenoer, a policy analyst with the environmental group Friends of the Earth calls the end of the subsidy – a win for taxpayers, the environment and people struggling to put food on the table. Matt Hartwig of the Renewable Fuels Association, says – the tax incentive is less necessary now than it was just two years ago. We don’t expect the price of corn to fall or rise just because the tax incentive goes away. We will produce the same amount of ethanol in 2012 as in 2011, or more.
NAFB News Service