Knowledge Bank

The U.S. corn ethanol industry is a subsidized, high cost, trade protected, limited scale industry; unable to compete in free markets or to efficiently supply new fuel demands of clean air legislation. Lower cost, sugar cane ethanol from Latin America (Brazil) should be a supplementary source, especially for U.S. coastal markets. Counter trade - corn for ethanol - would be more beneficial to U.S. corn producers than domestic ethanol corn markets. Variable producer subsidies should replace current market subsidy and import tax policies; giving limited protection to the domestic ethanol industry, while assuring adequate low cost ethanol supplies through competitive imports.