Editorial: Don’t touch Minnesota’s ethanol subsidy

Published 12:00 am Wednesday, January 30, 2002

From staff reports

One of the reasons Minnesota has become one of the leading ethanol producers in the nation is the state’s support for the alternative fuel, and make no mistake: The rural economy in this state has seen benefit from this new industry.

Wednesday, January 30, 2002

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One of the reasons Minnesota has become one of the leading ethanol producers in the nation is the state’s support for the alternative fuel, and make no mistake: The rural economy in this state has seen benefit from this new industry.

That’s why the legislature would be wise to carefully consider the damaging effects before it decides whether to cut the state’s ethanol subsidy, as Gov. Jesse Ventura suggested in his budget outline.

Ethanol has come a long way in terms of becoming established, and the future holds still more possibilities for widespread acceptance for the fuel. But the industry is still young, and cutting the subsidy now would give more of an edge to other states that produce ethanol. With several state-of-the-art plants operating now around the state, including the newly expanded EXOL plant near Albert Lea, the state is in a good position to be a leader for years to come, and state support can be part of making it happen.

Ethanol cooperatives help farmers by creating a market for their grain and by paying dividends on the fuel and byproducts sold. They help rural communities by employing workers in industrial and management jobs. And the whole industry helps the environment by providing an alternative, cleaner-burning fuel.

For these reasons, the ethanol subsidy should remain intact.