Rewarding Alternative Fuel Producers

The federal government is giving hundreds of millions of dollars to companies that increase production of ethanol and other alternative fuels. The Great Lakes Radio Consortium’s Lester Graham reports:

Transcript

The federal government is giving hundreds of millions of dollars to
companies that increase production of ethanol and other alternative fuels. The Great Lakes Radio Consortium’s Lester Graham reports.


Rather than going directly to farmers, the federal funds will be given to
companies such as Archer-Daniels Midland that produce ethanol and other so-called
bioenergy fuels. However, the USDA says the new 300-million
dollar program will indirectly benefit farmers. That’s because corn,
soybeans, and other crops are used to make the fuels. So- the USDA’s
Steve Gill says it’ll be good for farmers because the companies only get the
money if they buy more grain.

“You’re correct; direct payment does not go to the individual
grower. It goes to the producer. But, we’re hoping to create enough
incentive that that producer will be even more of the stocks.”

Despite a general accounting office report that questions the benefits of these kinds of government handouts for bioenergy, they remain politically
popular. For the GLRC, this is Lester Graham.