Extending the Ethanol Tax Credit

From the Daily Nonpareil via EVWorld, news that Iowa Senator Tom Harkin has introduced a bill that

would broaden the tax credit now available to small ethanol producers to include biodiesel producers as well as raise the maximum production for eligible ethanol or biodiesel producers to 60 million gallons a year.

Harkin touted the “economic and environmental benefits,” and I do think there’s a lot of good that could be done here. I have to wonder if this approach, which opens the door for bigger producers, will ultimately hurt smaller ethanol companies and producers. That is, are we seeing an economic opportunity for small farmers at risk of being swallowed up by larger agribusiness enterprises?

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