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Members of the United States Senate failed to kill a $5 billion annual subsidy for ethanol producers, with Kansas Sens. Jerry Moran and Pat Roberts voting to continue underwriting ethanol production with tax credits that amount to 45 cents per gallon with an additional 10 cents for small producers.
The two said this bill would abruptly end the subsidy, creating a hardship on Kansas companies that have big investments in ethanol production. They also said the subsidy would be back on the table.
We support ending ethanol subsidies but agree a measured approach is best for Kansas.
Supporters of ethanol production tout it as a means to produce domestic fuel from renewable sources and reduce America's dependence on foreign oil. Plenty of research shows this is a losing proposition.
Ethanol requires more energy to produce than it generates and drives up food costs by using corn normally fed to cattle. When corn gets expensive, producers turn to other grains for feed, which drives up the price of those commodities as well.
Ethanol produces a third less energy than gasoline and ethanol-gasoline blends offer lower fuel economy in most engines. Ethanol damages older engines and those not modified to burn it.
Besides subsidizing the price of ethanol, the federal government forces consumption by mandating increases in how much ethanol must be blended with gasoline.
Thanks to this government interference, Americans pay for ethanol with higher food costs and by covering government revenue lost to tax credits for ethanol producers.
When the time comes, Moran and Roberts must vote to end ethanol tax breaks and mandates, even when the subsidies help state businesses.
All this talk of reducing government deficits is political blather unless lawmakers are willing to take tough steps, including measures that alienate some of their own constituents.
-- Tom Bell
Editor & Publisher
822-1491
tbell@salina.com
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