The U.S. government gives refineries a tax incentive or subsidy of 51 cents for each gallon of ethanol they blend with gasoline.
Last week President George W. Bush said Congress should drop a 54 cent-per-gallon tariff on ethanol imports from Brazil.
The Brazilians say they will be "energy independent" next year, although their fuel usage is miniscule compared to the U.S. Brazil, and much of the rest of the world, process sugar cane and switchgrass for bio fuels.
Demand for ethanol may someday outpace the ability of U.S. farmers to produce corn (the year 2025 is bandied about). Sugar growers have enjoyed Federal protection and largesse since the hay-days in Cuba. This new vision is one of a nation dependent on switchgrass as the key feed for ethanol production.
It takes about 6 to 8 years to develop the switchgrass enzyme conversion technology sufficient for ethanol production plant practicability, according to our sources.
O.K. So here's the question - do we want to eliminate the (primarily) Brazilian tariff, or do we want to continue subsidizing domestic production with the tariff in addition to all of the other ethanol/sugar incentives and mandates?
In this corner . . . A.D.M,
In this corner . . . Cargill . . .
we'll let you figure out who is whom in the ring and why.
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