Reaction to Vilsack’s stand on Brazilian ethanol

The folks at the Iowa Corn Growers Association this morning emailed me a memo originally sent to association members in late January.  It specifically addresses the idea of lifting the tariff on importing ethanol made in Brazil, something former Iowa Governor Tom Vilsack advocated yesterday during an apearance on CNBC. (Transcript of Vilsack comments in previous blog post)  The Corn Growers disagree with Vilsack on this.

Friday, January 26, 2007       Volume 7, Number 4

A Summary of Legislative Activity of Interest to Iowa Corn Growers

Bush Emphasizes Renewable Fuels in State of the Union Address (Federal)
ICGA is pleased to report that on Tuesday night, President Bush outlined an aggressive agenda for the use of renewable fuels.  His plan called for a 35 billion gallon Renewable Fuels Standard (RFS) as a requirement by the year 2017.  We applaud the proposed ramp-up of the current 7.5 billon RFS.  The President’s plan includes ethanol, but also includes a major portion from other domestic energy sources, such as other varieties of grain or cellulose-based fuel.

Bush Energy Secretary Proposes Reduction of Ethanol Tax Incentives (Federal)
Unfortunately, on Thursday, President Bush’s Energy Secretary Samuel Bodman stated to the Associated Press that “the US tariff on ethanol imports will probably need to be lifted to meet the administration’s goal…so we can import more” ethanol.  ICGA believes that lifting the tariff allowing for foreign ethanol (1) does not reduce our reliance on foreign sources of fuel, and (2) results in the US taxpayer footing the bill when Brazilian ethanol, for example, receives the same 51 cent blenders tax
credit for each gallon of ethanol.  The existing 54 cent tariff on foreign fuel was meant to offset the 51 cent blenders credit, to ensure that foreign sources of fuel roughly break-even, and do not benefit from US taxpayer dollars intended to boost the US economy and increase our energy independence.  ICGA will oppose the Administration’s support for removing the tariff.

Print Friendly, PDF & Email
About O.Kay Henderson

O. Kay Henderson is the news director of Radio Iowa.


  1. Goodbye Napoleon says

    I heard Vilsack speak recently (and) his anti-subsidy comments struck me as odd but very calculated.
    Also –sorry for the off topic comment– but for all Sirius satelite radio subscribers: They are planning to drop C-SPAN from their channel line up. If this annoys you as it does me, please contact them and complain ASAP. Thanks!