TSCRA Daily News Update, May 2, 2008

Renewable energy proposals

The Farm Bill presently offers a mixed result for the cattle industry with regard to renewable fuels. Some policy actions appear to be taking renewable energy policy in a more sustainable and market-driven direction, including:

• To help offset the farm tax benefits package, the farm bill will lower the current 51-cent ethanol blender tax credit by six cents, to 45 cents.
• A big payment shift to cellulosic ethanol is included, as the cellulosic ethanol credit would be $1.01 per gallon.

But even as the nation struggles to find sufficient grain supplies and agricultural acres to meet renewable fuels mandates, the farm bill proposes an extension of the current 54-cent per gallon ethanol import tariff through 2010.

It is currently set to expire at the end of this year – and this is the course of action supported by NCBA member policy.

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