NCBA Urges Shift To Cellulosic Ethanol
The National Cattlemen’s Beef Association has approved a policy urging the Bush administration to phase out government subsidies for ethanol production, to scrap the 54-cent-per-gallon tariff on imported ethanol, and to transition from corn-based to cellulosic ethanol.
At Saturday’s Cattle Industry Convention in Nashville, Agriculture Secretary Mike Johanns told U.S. cattle producers that the government would encourage alternative methods of making ethanol to protect them from rising corn prices. “That is why we propose to accelerate our research into cost-effective ways of producing cellulosic ethanol from biomass,“ he said, noting that ethanol can be made using grasses, woody plants, wood waste, and sugar beets.
The proposed 2007 Farm Bill recommends spending $1.6 billion over the next 10 years on the development of cellulosic ethanol and proposes $2.1 billion in guaranteed loans for cellulosic projects as well as construction of production plants in rural areas.