Monday, February 05, 2007

NCBA says pull the plug on Ethanol subsidies

I was suprised to see that the National Cattlemen's Beef Assocation recently voted at their winter meetings to support pulling the plug on tax breaks for ethanol and to end tarriff's on imported ethanol as well. But very clearly the animal agriculture industry is feeling the increase in prices of corn.

The Cattle Industry Convention wrapped up Saturday in Nashville, Tennessee,
but not before National Cattlemen’s Beef Association (NCBA) members approved a
policy calling for a phase-out of government subsidies for ethanol production
and an end to the 54 cent per gallon tariff on imported ethanol. NCBA also
called on the government to focus on quickly transitioning from corn-based to
cellulosic ethanol. And in fact, during an appearance in Des Moines last week,
U.S. Ag Secretary Mike Johann told Brownfield the Bush administration’s focus on
cellulosic ethanol research in its farm bill proposal is specifically aimed at
helping livestock producers."The have felt the pain of four dollar corn, believe
me," said Johanns. "This has been quite an adjustment for them and our poultry
producers and our pork producers, so the emphasis on cellulosic, I think, will
be well received by them."

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