The American Farm Bureau says that it wants a better tax deal for U.S. biofuel feedstocks and does not intend to keep out alternative or competing fuels from foreign producers. AFB and other farm groups recently called for the pending 45Z tax credit to be restricted to domestic feedstocks instead of imported feedstocks like Chinese cooking oil and Brazilian ethanol.
American Farm Bureau’s Joe Gilson says that AFB intends to boost the case for domestic producers and the volumes of biofuel needed for aviation. AFB is not trying to introduce a new trade conflict.
AFB, the National Farmers Union, the National Corn Growers Association, and the American Soybean Association recently urged the White House and Treasury Department to restrict the tax credit to domestic producers.
Gilson says disputes with China or Brazil over its renewed ethanol tariffs are not the groups’ aim.
With that said the U.S. ethanol industry is eyeing retaliation after Brazil reinstated an 18 percent tariff on imported ethanol and the U.S. industry appealed to Brazil’s president for relief.
Surging Chinese cooking oil imports to the U.S. have also attracted attention, with U.S. lawmakers and the oilseed industry raising objections to the oils qualifying for tax credits.
