MU FAPRI reports economic impact of extending ethanol tax credit, tariff

Drovers Cattle Network
University of Missouri Extension Updated: June 27, 2011

COLUMBIA, Mo. – Extending the current ethanol tax credit and tariff would boost corn-based fuel production -- and corn prices, report University of Missouri economists.

The current 45-cent tax credit for biofuel blenders and associated 54-cent tariff on ethanol imports were studied by the MU Food and Agricultural Food and Policy Research Institute (FAPRI). Economists ran “what-if” scenarios on FAPRI computer models of the U.S. farm economy.

Both tax laws are due to expire Dec. 31, 2011.

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