Source: The Progressive Farmer
Iowa's Northey Says Lesson Should be Learned From Biodiesel
OMAHA (DTN) — Secretaries of agriculture in eight states have asked Congressional leaders to renew ethanol's volumetric ethanol excise tax credit, or the 45-cent-per-gallon blenders' credit, which is set to expire at the end of 2010.
Legislation has been introduced in both the Senate and House to extend the current ethanol tax policies to 2015. (DTN file photo)In a letter to leaders in both the U.S. House of Representatives and the U.S. Senate, the ag secretaries said the tax credit was important to their states.
"As representatives of rural America, we strongly urge you to support the extension of these important policies that allow us to successfully produce domestic fuel," the letter said. "America's farmers stand ready to continue their role as providers of food and feed, and are eager to continue to provide renewable fuel as well."
The letter is signed by secretaries of agriculture Bill Northey of Iowa; Jon Farris of South Dakota; Robert J. Boggs of Ohio; Doug Goehring of North Dakota; Tom Jennings of Illinois; Jon Hagler of Missouri; Rod Nilsestuen of Wisconsin; and Greg Ibach of Nebraska.
The ethanol industry is fighting to keep the credit in place, as many in the industry believe that without it they will not be profitable.
That is what has happened to the U.S. biodiesel industry, which has virtually shut down after federal lawmakers let that industry's $1 blenders' tax credit expire at the end of 2009.
In a statement, Northey said he's concerned ethanol would face the same fate without its tax credit.
