Bid to Repeal Ethanol Subsidies Welcomed19 May 2011
US- Meat, livestock and poultry groups in the US have applauded Senators Tom Coburn and Dianne Feinstein for their leadership in introducing the Ethanol Subsidy and Tariff Repeal Act.
The groups say that if the bill is passed, it would end 30 years of tax credits for conventional ethanol and the tariff on imported ethanol from 1 July.
“At a time when animal agriculture is facing pressures on many fronts, this legislation would ease the economic strain that is heavily impacting the industries that rely so heavily on corn to feed livestock and poultry,” the associations wrote.
“Corn-based ethanol has distorted the corn market, and stretched corn supplies to the point production costs have been increased significantly. Additionally, eliminating the import tariff will allow ethanol from around the world to compete on a level playing field with US ethanol.
”If enacted, this legislation would save taxpayers nearly $3.3 billion in 2011.
Experts such as the Congressional Budget Office and the Government Accountability Office have already concluded that the subsidy is unnecessary and leading economists agree that ending it would have little impact on ethanol production, prices or jobs.
“This legislation will help American consumers by ending the costly and unnecessary protection and subsidization of converting corn into fuel. We applaud you for your leadership on the issue and strongly encourage Congress to pass this legislation promptly,” the letter concluded.
Signatories to the letter included the American Meat Institute, California Dairies, Inc., National Chicken Council, National Cattlemen’s Beef Association, National Meat Association, National Pork Producers Council and National Turkey Federation.