US biofuels hurt if 2010 tax break expires-report

Reuters
Tue Mar 9, 2010 2:24pm ESTStocks
By Charles Abbott

WASHINGTON, March 9 (Reuters) - U.S. fuel ethanol and biodiesel production would be cut by 10 percent if Congress allows biofuel tax credits to expire this year, a University of Missouri think tank said on Tuesday.

Corn and soybean prices would fall by 15 cents a bushel, estimated the Food and Agricultural Policy Research Institute (FAPRI). One-third of the corn crop is used to make fuel ethanol and about 11 percent of U.S. soybean oil is used for biodiesel.

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