Ethanol Subsidies on the Chopping Block

Nov. 4, 2010 /EIN Presswire/ -- The word "agriculture" was seldom mentioned in the political campaigns that just ended, but no area of public life may be more affected by the results.

The battle over changes in agricultural programs may begin as early as the lame duck session, during which Congress must decide whether to extend a 45-cent-a-gallon tax credit for ethanol blenders. Cutting the subsidy would directly affect big ethanol producers such as Archer Daniels Midland.

Unless extended, the tax credit for ethanol blenders, a 54-cent a gallon tariff on imported ethanol and a 10-cent-a-gallon small-producer tax credit all expire Dec. 31.

Republicans have pledged to make major cuts in government spending, and agriculture spending looms as a big target.

The five-year farm bill comes up for renewal in 2012 and the new version could look much different. As part of a compromise in the 2008 farm bill, many programs are scheduled to expire in 2012, including all research and crop production for cellulosic ethanol and advanced biofuels.

For more agriculture news, visit Agriculture Industry Today (http://agriculture.einnews.com), an agriculture media monitoring service from EIN News.