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US ethanol subidy could fall

The US subsidy on ethanol could fall by a nickel (that's 5 cents to the rest of the world) to 51cent/gallon from about 2010 to help fund alternative fuels made from cellulosic sources, according to the DesMoines Register.

Philip Brasher, writing in the Register: says
The tax credit serves as a subsidy for corn. Recent studies have found that the price of corn would fall about 10 percent if the credit were eliminated along with a tariff on imported ethanol.

That's got to be a cut worth having if it feeds through to food prices.

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