Wisconsin Ag Connection: Senator Johnson Blasts Vote to Continue Ethanol Subsidies

Wisconsin's freshman Senator said he voted for the failed measure Tuesday that would have ended tax credits to ethanol producers for the coming year. In a statement to the media, Republican Ron Johnson said it is a bad idea to base a business model on receiving government subsidies at a time when the nation's debt is growing.

Proposed by Sen. Tom Colburn of Oklahoma, the bill aimed to cut nearly $5 billion in payments to ethanol manufacturers, but failed on a vote of 40-59.

"We've added $4.2 trillion to the nation's debt over the last three years and this year we are spending another $1.5 trillion that we don't have," Johnson said. "Successful private sector companies base their business model on products and services that can compete successfully in the free market system. We need to get government out of the way and unleash the private sector. It is time to finally get serious about reducing our debt and deficit."

Joshua Morby of the Wisconsin Bio Industry Alliance praised Tuesday's vote, saying it was good news for Wisconsin's ethanol producers and the hundreds of workers the industry employs throughout the state.

"WBIA members are pleased that the Senate has voted to support ethanol producers in providing viable alternatives to petroleum-based fuels," Morby said. "We are disappointed in Senator Johnson. His opposition is a short-sighted approach to a long-term situation."

Under its structure, the Volumetric Ethanol Excise Tax Credit provides a $0.45-per-gallon tax incentive to qualifying ethanol blenders of pure ethanol blended with gasoline. Senator Herb Kohl voted against the measure.

With nine large-scale operations, Wisconsin ranks ninth in the nation in ethanol production with overall capacity of more than 500 million gallons.

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