NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss said a tax credit in the Inflation Reduction Act of 2022, which will reward ethanol producers per gallon based on how much they reduce CO2 emissions could fundamentally change the industry.
"That's going to call for significant reductions in CO2, a 40% reduction, as a matter of fact, between now and 2030," Goss said. "That's going to effect the ethanol industry, if it is enforced. If that's enforced, the industry's got to cut back on a lot of that."
The latest survey of rural bankers from Goss asked them how important ethanol is to their local economy.
He also asked them what they thought would have to be done to get farmers to embrace CO2 sequestration.
"The EPA is going to be a lot tougher on ethanol," Goss said. "You have to wonder, where is ethanol going to get its backers? You've got a lot of Senators and Congressional representatives in this part of the country standing up for ethanol, but anything the Wall Street Journal and the New York Times and the L.A. Times agree on, which is, they don't like ethanol, that's a problem."
It also may be less politically punitive for Democrats to turn against ethanol, at least those with Presidential aspirations, now that the Democratic National Committee voted to officially strip the Iowa caucuses of their "first in the nation" status.
Iowa Democrats are still fighting to keep their spot in the order, but with President Biden expected to seek reelection, the point may be effectively moot, at least until 2028, and if Biden wins again, the changes may have already been made by then.
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