Will Federal Policies Be Required For Ethanol Viability?

Cattlenetwork.com
06/02/2010 09:52AM

Ethanol has been slowly adopted, helped by various tax credits and incentives that will continue to exist for years to come. That is the upshot of a new study on ethanol and biofuels which provides policy makers with instant feedback about their decisions.

Ethanol and biofuels policies have been analyzed by the Food and Agricultural Policy Research Institute at the University of Missouri to determine the impact of biofuels policy in 10 years, depending upon what was decided. Their analysis keeps today’s basis policies in place, not only the ethanol supports, but also the biodiesel credit that expired in December.

The growth of ethanol soon begins to slow down, but 15 billion gallons will be produced in 2015 when other types of ethanol gain a foothold. Because of the upper limit for corn use in ethanol production, imported sugar begins to see significant use.

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