Eliminating Direct Payments and Potential Impacts of Extending Ethanol Tax Credit

by Chris Bruynis, Extension Educator

The University of Missouri recently released two articles that are of interest to farmers. The first examines the effect on the agriculture economy if direct payments would be eliminated from the next Farm Bill while the second examines the potential impacts of extending the ethanol tax credit.

Eliminating direct payments is expected to increase the participation in ACRE or similar options in the next Farm Bill, have no effect on acres planted by crop, and reduce land values slightly. For more information go to Potential Impacts of Eliminating Direct Payments.

The ethanol tax credit article can be found at FAPRI U.S. Biofuel Baseline and impact of extending the $0.45 ethanol blenders credit. Although this article looks at the benefit and probable outcomes of extending the credit, the reader can infer what the probable outcome may be now that the tax credit has been voted out by the Senate.

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