April 16, 2010
The end of the ethanol tariff would impact Wisconsin (Brownfield Ag)
Growth Energy and the Wisconsin Bio Industry Alliance have some specific numbers for the Badger State if the tariff on ethanol imports is not renewed. Citing a University of Missouri study, the groups say if the tariff lapses, Wisconsin would lose over 13,000 jobs and $2.4 billion in economic output in the first three years.
While the numbers are big, Wisconsin would not take the hardest hit. The Missouri study found the biggest economic losses should the tariff end would be in Iowa, Illinois, Nebraska, Minnesota, Indiana and South Dakota. The declines would be from combined losses in manufacturing, the service industry, financial services along with “steep drops in value for corn, wheat, barley and sorghum.”
The organizations also cite an IHS Global Insight study which predicted should the tariff expire; Brazilian ethanol imports would climb to 2 billion gallons per year but not replace any oil, only domestic ethanol.
The federal tariff on ethanol imports is set to expire at the end of this year.
