Farm aid legislation signed into law earlier this summer includes several provisions likely to benefit the ethanol industry. The Agricultural Risk Protection Act of 2000 was approved to provide financial assistance for American farmers under duress due to record low commodity prices and lower the cost of purchasing crop insurance.

At the request of Illinois Senator Peter Fitzgerald, House Speaker Dennis Hastert and Representative John Shimkus, of Illinois, the legislation included $14 million for the Southern Illinois University at

Edwardsville ethanol research pilot plant. The law also includes funding to implement the "Lugar Bill," providing $49 million over the next five years to fund research and development to promote increased production of bio-based fuels, products and chemicals. In addition, Iowa Senator Chuck Grassley included $15 million for the development of business plans and strategies to encourage greater participation by producers in value-added markets such as ethanol.