The National Sorghum Producers opposes lifting the secondary tariff on ethanol because it will fail to deliver lower gasoline prices to consumers while subsidizing foreign ethanol production.
“Our nation is struggling with high gasoline prices, but U.S. ethanol production is not to blame,” said NSP President Greg Shelor of Minneola, Kan. “According to the Energy Information Administration, there is more than twice as much ethanol produced in the U.S. than is needed by refiners to replace MTBE. We are also importing ethanol, some of it duty-free through the Caribbean Basin Initiative. If there is any more available ethanol not already entering the market, it would not help significantly in lowering gasoline prices.”
NSP CEO Tim Lust said that sorghum producers are helping the nation to become more energy self-sufficient. “Our nation’s farmers are ready for the challenge to help bolster our energy independence and national security. Lifting the secondary tariff would do nothing but give tax credits to foreign countries.”
Ethanol production consumes approximately 15 percent of the U.S. grain sorghum crop. Grain sorghum also yields the same amount of ethanol per bushel as corn.
NSP represents U.S. sorghum producers. Headquartered in Lubbock, Texas, in the heart of the U.S. Sorghum Belt that stretches from the Rockies to the Mississippi River and from South Texas to South Dakota, the organization works to ensure the profitability of sorghum production through market development, research, education and legislative representation.