NCBA Supports Repeal Of Ethanol Subsidy

US - The National Cattlemen’s Beef Association (NCBA) supports legislation introduced by US Representatives Wally Herger and Joseph Crowley to immediately repeal the 45-per cent per gallon Volumetric Ethanol Excise Tax Credit (VEETC) as well as the 54-cent per gallon tariff on imported ethanol.
calendar icon 27 June 2011
clock icon 2 minute read

NCBA member and California cattleman Paul Cameron said government support of the corn-based ethanol industry has negatively affected his cattle-feeding operation as well as his ability to retain employees and, ultimately, make a profit.

“Our cattle rely primarily on Midwestern grown corn as their primary source for grain. This year 41 per cent of our nation’s corn crop will be used up by a heavily subsidised ethanol industry. In a year where grain inventories have been reduced by adverse weather conditions, corn prices have risen dramatically. Because of this, any chance of profitability in all protein industries has vanished,” Mr Cameron said.

“The cattle inventory in our own operation is being reduced and we have already begun the process of laying off many of our employees. Coming from a county with nearly 30 per cent unemployment, these good, hard-working people will be relegated to trying to find jobs where there are none. These are the very people who take pride in the fact that they not only feed a nation, but also feed the world.”

According to Rep. Herger, who is a senior member on the House Committee on Ways and Means, which has jurisdiction over our nation’s tax code, the VEETC and the import tariff distort the economy and raise costs for farmers and ranchers.

“Ethanol subsidies are among the worst examples of special-interest politics in the government. The Government Accountability Office and the Congressional Budget Office have concluded that the ethanol tax credit is both wasteful and duplicative. These subsidies distort the economy by diverting corn away from feedstock, raising costs for farmers and ranchers and ultimately for consumers,” Mr Herger said.

“The Ways and Means Committee has been examining how best to pursue comprehensive tax reform that eliminates special tax breaks and lowers the tax rate for everyone. I believe that abolishing the wasteful ethanol subsidy is a key aspect of moving toward a simpler and fairer tax system.”

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.