Corn+Soybean Digest

Biofuels Need Subsides

If biofuels are to be successful, subsidies must exist, says an Iowa State study exploring their future.

Ag economists calculated that to meet federal production mandates, corn will need a 22-78¢ subsidy, biodiesel will need $1.97-2.90 and cellulosic ethanol will need to be subsidized $1.55-2.11. They contend the federal mandates may create more of a food vs. fuel debate, since corn will need a lower subsidy than switchgrass.

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