Another issue with government programs is fickle politicians. Let a company try to plan a business path, only to have the government change, based upon changing winds. The latest is the growing uproar on food prices and shortages. So those small ethanol and biofuels producers who faithfully followed the government lead and mandates will get stuck.
Farm Futures April 28, 2008
However; in order to get over the funding hurdle, some changes were made to ethanol tax credits. The federal tax break on ethanol was reduced six cents a gallon, from 51 to 45 cents, and tax credits for biodiesel were stripped from the bill. The tariff on imported ethanol was extended through 2010.
The permanent agricultural disaster aid program pushed for by Senate Finance Committee Chairman Max Baucus, D-Mont., remains in the bill, however at $3.8 billion rather than the original $4 billion that was proposed. Baucus says that the important thing is that the program is there.
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