(Notícia em Inglês)
Agriculture Secretary Tom Vilsack is warning lawmakers that ending the ethanol subsidy would kill jobs, citing the impact on biodiesel producers when its tax credit lapsed last year.
Economists, however, say that the industries vary significantly from each other in their dependence on federal policies and that the impact of ending the ethanol subsidy would be relatively small by comparison.
The 45-cent-per-gallon tax credit that subsidizes corn ethanol is due to end Dec. 31 unless Congress extends it, and some lawmakers are pushing to end it even earlier.
Vilsack told the Senate Environment and Public Works Committee on Wednesday that ethanol incentives should be reduced over time, not ended abruptly.
"If you create a cliff, you're going to create a significant job loss in rural America at a time when we're just beginning to turn a corner in terms of the economy," he said.
He suggested shifting money into building a bigger market for ethanol, such as through the production of cars and trucks that can run on higher blends of ethanol.
Sen. Frank Lautenberg, D-N.J., questioned why the ethanol industry needs subsidies when it also benefits from usage mandates that increase each year. In 2011, refiners are required to use 12.6 billion gallons of corn ethanol, and the mandate rises to 15 billion gallons by 2015.
Agriculture Secretary Tom Vilsack is warning lawmakers that ending the ethanol subsidy would kill jobs, citing the impact on biodiesel producers when its tax credit lapsed last year.
Economists, however, say that the industries vary significantly from each other in their dependence on federal policies and that the impact of ending the ethanol subsidy would be relatively small by comparison.
The 45-cent-per-gallon tax credit that subsidizes corn ethanol is due to end Dec. 31 unless Congress extends it, and some lawmakers are pushing to end it even earlier.
Vilsack told the Senate Environment and Public Works Committee on Wednesday that ethanol incentives should be reduced over time, not ended abruptly.
"If you create a cliff, you're going to create a significant job loss in rural America at a time when we're just beginning to turn a corner in terms of the economy," he said.
He suggested shifting money into building a bigger market for ethanol, such as through the production of cars and trucks that can run on higher blends of ethanol.
Sen. Frank Lautenberg, D-N.J., questioned why the ethanol industry needs subsidies when it also benefits from usage mandates that increase each year. In 2011, refiners are required to use 12.6 billion gallons of corn ethanol, and the mandate rises to 15 billion gallons by 2015.