U.S. Senators Dianne Feinstein, (D-Calif.), and Judd Gregg, (R-N.H.) have introduced legislation to lower the tariff on imported ethanol to bring it in line with U.S. ethanol blending subsidies. U.S. ethanol blender subsidies were recently lowered to 45 cents per gallon from 51 cents per gallon.
The bill would cut import tariffs to 45 cents per gallon from the current level of 54 cents per gallon, and require Congress to lower tariffs again if blending subsidies are cut even further. The bill has been referred to the Senate Finance Committee.
J. Patrick Boyle, president of the American Meat Institute said, “We applaud Senators Feinstein, Gregg, Cantwell, Allard and Collins for recognizing the serious challenges these policies have presented to an integral part of the American farm community – America’s livestock producers. Our current food-to-fuel mandates have forced over one-quarter of the U.S. corn crop to be diverted from feed and food to the production of ethanol, driving animal feed prices sky-high. The soaring feed costs imposed on our livestock will continue to create inflationary pressure on meat and poultry producers and hurt American consumers.”