Re: Ethanol Subsidies: It's Not Easy Being Green
by zjin
Yes, the subsidies for ethanol are largely benefits for farmers, not only corn farmers (but also soybean and wheat). We just completed a study (http://www.state.ia.us/tax/taxlaw/creditstudy.html) on state investment tax incentives toward ethanol plants. The impact on corn price and farm income is obvious. For a rural state, that policy is quite important so personally I do not see it goes away. But the 25% biofuel target at 2020 is considered to be missed. The question is what kind of new energy legislation will be developed in the future?
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