FarmPolicy

June 20, 2019

Biofuels; Debt Negotiations; Ag Economy; Trade; and Labor

Biofuels

Chris Clayton reported yesterday at the DTN Ag Policy Blog that, “The Food and Agriculture Policy Research Institute at the University of Missouri released a report Monday looking at some market effects of ethanol policies.

Congress is considering several different alternatives to current ethanol policies. Reports coming out of the deficit negotiations seem to indicate negotiators are willing to consider significant cuts in the Volumetric Ethanol Excise Tax Credit, or VEETC, which most of us just call ‘the blenders’ credit.’ The credit is approaching $6 billion a year in cost, which isn’t considered sustainable politically.

“The Senate earlier this month voted to eliminate the blenders’ credit and import tariff immediately, even though both already are set to expire at the end of the year. Still, the overall bill in which that ethanol language was included actually failed to pass.”

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