Ethanol proponents are seeking to include an amended small ethanol producer tax credit in the economic stimulus package being debated in Congress. The Coalition's, Chairman, Nebraska Governor Mike Johanns, recently sent a letter to Senate Finance Committee Chairman Max Baucus of Montana and Ranking Member Chuck Grassley of Iowa requesting their support. "The credit was created as an incentive for farmers who invested in small ethanol production facilities. At present, this credit works as a disincentive to farmers organized as a cooperative. The addition of the small ethanol producer credit for farmer cooperatives will make available an incentive that is important to the nation's ethanol plant development efforts, especially in rural areas of our states," Johanns said.

"If included in the economic stimulus package, this provision will be a timely incentive for farmer cooperatives that are facing significant economic challenges," Johanns said. "The addition of farmer-owned ethanol cooperative incentives will help to stimulate the economy of areas in which the plants are located, and the new production will increase domestic ethanol production capacity. This combination of value-added agri-processing and production of renewable ethanol from domestic resources will serve to strengthen the economic stimulus package and will allow farmer cooperatives to participate in the growth of the ethanol industry."

Similarly, Senators Tim Johnson of South Dakota, Mark Dayton of Minnesota, Paul Wellstone of Minnesota, and Tom Harkin of Iowa expressed their support to the Democratic leadership. "As measures are being taken to strengthen our current economy in the short term, it is vital that our nation's farmers and ranchers are not left behind," they wrote to Senate Majority Leader Tom Daschle of South Dakota and Finance Chairman Max Baucus of Montana. "If included in the economic stimulus package, this provision will be an equitable and timely incentive for existing and start-up farmer-owned cooperatives that are facing significant economic challenges today."

On behalf of industry and agriculture, the Renewable Fuels Association, American Coalition for Ethanol, National Corn Growers Association, and National Farmers Union weighed in with the Senate Finance Committee. "At this critical time for America and the need for energy independence, we urge you to add to the economic stimulus package the small ethanol producer credit," they said. "Ethanol is a viable source that will assist in meeting the domestic energy needs of this country, and the effect of the legislation will directly send the benefit of a tax credit to the farmer owners of ethanol processing cooperatives."

The complete text of the Coalition's letter can be found at www.ethanol-gec.org/11132001.htm