Agricultural News
NCBA Pleased With Ethanol Agreement and End of Ethanol Tax Credit
Fri, 08 Jul 2011 10:57:33 CDT
National Cattlemen's Beef Association President Bill Donald said cattlemen are pleased the energy compromise reached by U.S. Senators Dianne Feinstein (D-Calif.), John Thune (R-S.D.) and Amy Klobuchar (D-Minn.) would repeal the 45-per cent gallon Volumetric Ethanol Excise Tax Credit (VEETC) and the 54-cent per gallon tariff on imported ethanol. However, Donald said cattlemen are concerned the compromise would extend tax credits for ethanol infrastructure.
"We commend the senators for working on a compromise and especially Sen. Feinstein for her leadership on this issue by gaining support from 73 senators to level the playing field for a bushel of corn," Donald said. "While we're pleased the agreement would repeal the VEETC and the tariff, we are disappointed that it would continue to prop up an industry that should be able to stand on its own two feet."
Donald said rather than perpetuating the industry's reliance on taxpayer support with "ethanol support Part II," we should take a market-based approach to the development and usage of renewable fuels.
"Cattlemen aren't opposed to ethanol. We believe after 30 years and more than $30 billion in taxpayer support, it's time to take off the corn-based ethanol industry's training wheels," he said. "We will continue supporting efforts to reduce our nation's dependence on foreign energy. However, we will oppose renewable energy policies that put cattlemen at a competitive disadvantage for a bushel of corn."
Director of Legislative Affairs for NCBA, Kristina Butts also weighed in on the issue of VEETC and what it means to livestock producers saying they are still concerned with $125 million still being allocated for corn based-ethanol infrastructure.
"We fully support ethanol but we want it to market driven and market driven for the production and the usage of these fuels," said Butts.
Butts also stressed how time is of the essence with this recent agreement. If this agreement does not move in the next two weeks through the House, the Senate and signed by the President, the agreement dies on August 1, says Butts.
Click on the LISTEN bar below to hear the rest of our conversation with Kristina Butts of the NCBA on the recent energy compromise concerning ethanol.
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