Future Ethanol Policy Changes
by Kent Theisse (Corn and Soybean Digest Blogs and Opinions) … Many people are very excited about producing ethanol from woodchips, switchgrass, algae and other substances; however, most of this type of ethanol production is still in the early research and development stages, and is several years away from commercial production. Using corm cobs and corn stover is the most promising new feedstock source for ethanol production. It can be very risky to invest in new forms of renewable fuels – most of which face very high start-up costs – if there is no guarantee of a future market for the fuel. This could drive away investors and lenders from supporting future growth of renewable fuels.
Most experts agree that neither the VEETC tax credit or the ethanol import tariff were meant to be permanent, and would probably be phased out over time. This may be a good time to phase out or to re-adjust the blenders credit and the tariff; however, future development and production of renewable fuels needs to be considered. As we continue to fight wars in the Middle East, and deal with erratic world oil prices, we need to continue to explore alternative fuels and create opportunities for commercial development of viable renewable fuel alternatives. We need leaders at the federal and state level who are visionary in developing a comprehensive energy plan for the U.S. READ MORE
