Incentives for ethanol are up in the air
As lawmakers debate the debt ceiling, ethanol groups are concerned about legislation introduced by the House Speaker. Representative Kevin McCarthy’s list of demands includes repealing the biofuel tax credits passed in the Inflation Reduction Act.
Renewable Fuels economist, Scott Richman, tells Brownfield Ag News the credits are vital for developing sustainable aviation fuel, for decarbonization and climate goals, and for extending U.S. fuel supplies.
Nationwide, USDA says 45 percent of U.S. corn is used for ethanol production and that is prompting studies on the economic impact of E15.
The latest research out of Minnesota by ABF Economics shows statewide use of E15 would:
- Contribute $1.06 billion to the state’s economy
- Save consumers $84 million
- Help meet climate goals by eliminating 1.02 million metric tons of greenhouse gas emissions per year
Support 20,000 jobsRelated StoriesA recent study by the Environmental Defense Fund in Kansas is urging farmers to diversify crop portfolios to mitigate risks and ensure long-term sustainability.As farmers gear up for the spring planting season, it’s crucial to remember that financial planning goes hand in hand with early season crop protection.