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Non-Tech : Farming -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (1342)	6/18/2008 12:40:02 PM
From: Tommaso	Read Replies (1) \| Respond to of 4448

>>>Reducing the ethanol tariff Another potential solution that is gathering support in Congress is reducing or eliminating the foreign ethanol tariff. The import tariff of 54 cents a gallon on ethanol keeps the price of imported ethanol high in an effort to support domestic farmers.<<< Got CZZ?

To: Cogito Ergo Sum who wrote (1342)	6/18/2008 7:20:26 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 4448

Needless to say, if a tariff rollback is enacted it would be HUGE for CZZ! Reducing the ethanol tariff Another potential solution that is gathering support in Congress is reducing or eliminating the foreign ethanol tariff. The import tariff of 54 cents a gallon on ethanol keeps the price of imported ethanol high in an effort to support domestic farmers. Much of imported ethanol is made from sugar cane, which is cheaper to produce than domestic corn-based ethanol. Energy industry experts say lifting the tariff entirely will likely lower gas prices by 10 cents a gallon, but legislation that proposed canceling the tax found little support in Congress. As a result, Sens. Dianne Feinstein, D-Calif., and Judd Gregg, R-N.H., recently introduced a compromise bill to reduce the tariff to 45 cents. "The need for inexpensive and cleaner-burning fuels continues to grow, and yet U.S. refiners are forced to pay a 54-cent tariff on ethanol imported from Brazil and other foreign sources," Feinstein said on the Senate floor last week. "This makes no sense, given the record oil prices and the limited supplies of domestic ethanol." Gregg noted that ethanol cannot be transported through pipelines, which makes the domestic product hard to come by in some states. As a result, many non-midwestern states are forced to use foreign ethanol and pay the tariff at the pump. "States outside the Midwest, especially ... coastal states, are at a huge disadvantage when it comes to accessing domestically produced ethanol due to shipping challenges," said Gregg on the floor. "Imported ethanol from Brazil and other friendly nations can be provided to these coastal states more easily and at a lower cost." Disclosure: LONG shares of Cosan (CZZ).