AMI applauds introduction of senate legislation to end ethanol subsidies
J. Patrick Boyle, president and CEO, American Meat Institute, has applauded Senators Coburn and Cardin for introducing legislation that would end the refundable Volumetric Ethanol Excise Tax Credit (VEETC), releasing the following statement:
“With the US corn supply at record lows, corn prices at record highs and ethanol production absorbing 40 percent of US corn production, government subsidies for corn-based ethanol, like VEETC, continue to artificially inflate the market for corn. As a result, the cost of feeding livestock has increased, which in turn drives up the cost of food production for everyone in the supply chain, trickling down to the consumer. This bipartisan bill is an important step in reversing that trend, and I applaud Senators Coburn and Cardin for their leadership on this issue.
This legislation not only would benefit American consumers who are struggling with escalating food prices, but would save American taxpayers $4 billion this year.
At a time of record federal deficits, coupled with rising food prices both at home and abroad, it is time the mature corn-based ethanol industry operates on a level playing field with other commodities that rely on corn as their major input.”
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