Mixed Reaction Tax Bill; Ethanol Demand in China
**Mixed reaction on the recently passed Senate tax bill.
According to Brownfield, the Ranking Member of the Senate Ag Committee, Debbie Stabenow of Michigan says the bill is a lost opportunity for real tax reform.
Committee Chair Pat Roberts of Kansas says it keeps the ag tax provisions and creates a more pro-growth tax system, lowering farmers’ tax burden and simplifying Ag sector tax provisions.
The National Farmers Union is disappointed with the bill while the American Farm Bureau Federation commends its passage.
**Earlier this year, China announced they would require ethanol blends in ALL fuel by 2020, giving U.S. corn producers hope this could bump corn prices in the coming years.
Now that the dust has settled, Ag economist Naomi Blohm says demand is growing in China, and ethanol imports from the U.S. have already been seen.
Blohm tells Agweb.com 20% of China’s gasoline currently contains ethanol and getting it up to 100% will require an additional billion bushels of corn per year.
**Congressional Republicans are gearing up for fast-paced, high-stakes negotiations to deliver a sweeping package of tax cuts that could provide significant relief to farmers and ranchers.
According to Agri-Pulse, the goal is to put a final bill on President Trump's desk by Christmas. The House voted Monday to go to conference with the Senate to reconcile differences between a House bill passed in November and a Senate version passed Saturday.