Minnesota’s auditor suggests ending state ethanol subsidy

A few days ago the auditor in Minnesota suggested that the state’s use of subsidies to the ethanol industry may have outlived its purpose, since ethanol firms have been profitable. Also it is likely to cost $44m over the next three years.

There are of course lots of votes in Minnesota’s ethanol plants, so it is unlikely that the idea will get very far this year. But, if the recession starts to bite, and if there is pressure to cut state taxes in future years it could become a lot tougher for ethanol plants. The Minnesota Public Radio site has a link to a map of the state’s plants. Here it is

View Ethanol Plants in Minnesota in a larger map

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