SD Corn Growers laud Senate ethanol decision

The South Dakota Corn Growers Association (SDCGA) hailed today’s defeat of an attempt by Sen. Tom Coburn (R-OK) to immediately eliminate ethanol tax credits as a victory for the ethanol industry and corn producers.
“We support reform and budget reductions, but Sen. Coburn’s amendment went way too far. It would have greatly reduced ethanol production and eliminated jobs in South Dakota and other ethanol-producing states. It also would have increased fuel costs for consumers,” said Gary Duffy, president of the South Dakota Corn Growers Association. “We thank our South Dakota senators, John Thune and Tim Johnson, for their continued support and for taking a strong stand against this amendment.”
Coburn’s amendment to end the Volumetric Ethanol Excise Tax Credit needed 60 votes to pass, but received only 40 votes on the Senate floor, with 59 votes against it.
The SDCGA favors a less-radical approach and supports a bill that was introduced Monday by Thune (R-SD) and Sen. Amy Klobuchar (D-MN). That bill would generate $2 billion by ending the blender’s credit July 1 and committing $1 billion of that to deficit reduction and $1.5 billion to ethanol infrastructure, including blender pumps.
“The Thune-Klobuchar bill will reduce the deficit while supporting ethanol production and use that is vital to our nation and our economy,” said Lisa Richardson, SDCGA’s executive director. “We’re pleased that nearly 60 percent of U.S. senators realized how detrimental Sen. Coburn’s bill would have been. We hope those same senators and others will support the Thune-Klobuchar plan.”