“Ethanol is the only industry that benefits from a triple crown of government intervention: its use is mandated by law, it is protected by tariffs, and companies are paid by the federal government to use it.” So said Senator Diane Feinstein, D-Calif., as she joined Senator Tom Coburn, R-Okla., in introducing legislation May 3 to eliminate the ethanol tax credit and repeal ethanol’s tariff protections.
The Ethanol Subsidy and Tariff Repeal Act was filed as an amendment to a pending small business bill. The credit earns refiners 45 cents for every gallon of ethanol they blend with gasoline and costs taxpayers about $6 billion a year.
Testifying before a House Agriculture subcommittee May 4, NPPC President Doug Wolf said tight corn supplies, driven in part by subsidized ethanol production, could cause livestock feed shortages this year and be disastrous for pork producers. Support for renewable fuels is laudable, Wolf said, but it should not “come at the expense of the U.S. livestock industry.”