Ethanol Bill Should Focus on Future

A bipartisan group of senators has introduced legislation that would provide more assistance to farmers who grow corn and create new incentives to encourage farmers to grow switchgrass and other crops that could be used to produce cellulosic ethanol.

According to Green Car Congress, switchgrass takes 3 years to mature to the point that it can be harvested, so grants would provide money to tide farmers over. This makes economic sense since cellulosic ethanol provides a better energy yield per dollar and won't compete with the food supply. A little nudge will go a long way in meeting the goals of energy independence and reduced emissions.

The bill also expands the price supports for producing E85 today, but that's not the best long term investment. Corn prices are out of control because of the amounts of E85 required by state and federal laws. We want ethanol to compete with gasoline on price, but by mandating its use we are increasing the price because demand is outstripping supply.

It's also time to stop the tariff on Brazilian ethanol. With the current requirements for ethanol, demand will continue to be high, and its better to expand the international supply rather than forcing American farmers to choose between selling corn for food versus fuel.