Group Forms To Advocate Ethanol Subsidies

The Alliance for Abundant Food and Energy which includes Archer Daniels Midland Co., Monsanto Co., DuPont Co. and  Deere & Co., has formed to promote the idea that renewable fuels won’t cut into food supplies if new technologies, such as genetically modified crops, are used to their fullest, The Wall Street Journal reports.  The group is also working hard to protect government subsidies for ethanol production.

The alliance’s main opposition are food producers in the U.S. that are lobbying to get ethanol subsidies scrapped or reduced.  Current U.S. renewable-fuel policy includes a 51-cent-a-gallon subsidy on corn- produced ethanol and a tariff on imports, mainly sugar-based ethanol from Brazil.