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by Gov. Bob Taft

Since the 1980s, Ohio’s farmers have been working hard to create demand for ethanol across the state. Ohio uses more than 200 million gallons of ethanol per year in 2 billion gallons of ethanol-blended fuel, thanks to the promotional efforts of our corn growers and due in-part to the Ohio Blenders’ Tax Credit that existed from 1983 to 1997. But nearly two decades and $250 million later, we still have not capitalized on the market that we have spent so much time and energy to create. This needs to change.

Sen. Larry Mumper (R-Marion) recently introduced Senate Bill 144 and Rep. Keith Faber (R-Celina) introduced parallel House Bill 420 to help farmers establish an ethanol plant in Ohio. This legislation includes key elements of a plan that I introduced at the Farm Science Review in September. In a November hearing on Senate Bill 144, Agriculture Director Fred Dailey and Development Director Bruce Johnson testified on my behalf before the Senate Ways and Means Committee, expressing my Administration’s support for this bill.

This is the right legislation at the right time for Ohio. The bills provide incentives for farmers to take an equity position in a producer-owned ethanol plant. Tax credits of up to $5,000 for participating farmers and other investors will allow farmers to share in both the risk and profit of an ethanol plant. Another financial incentive included in the legislation would make an ethanol plant eligible for tax abatements under the existing Air Quality Development Authority. These are very similar to the Ohio Ethanol Plan I put forward earlier this year at the Farm Science Review.

Most importantly, Senate Bill 144 and House Bill 420 are good for Ohio farmers. Ethanol production has given an economic boost to farmers in 20 other states, and production continues to break records month after month. Nationally, ethanol production is at 1.9 billion gallons annually and counting. Even more amazing, last year, several farmer-owned plants across the Midwest made value-added payments to farmers of $1 or more per bushel in addition to the price paid to farmers for their corn. I want to see Ohio farmers afforded that kind of profit opportunity.

Ohio farmers should be congratulated for helping create one of the country’s leading ethanol markets here in our own state. It’s time we begin to supply that strong market with ethanol produced right here in Ohio. I encourage you to continue your efforts by contacting your state senators and representatives to show your support for Senate Bill 144 and House Bill 420.