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In an effort to strengthen Ohio's economy, improve the environment and meet future energy needs, Gov. Bob Taft signed legislation encouraging the development of an ethanol plant in Ohio.

Senate Bill 144 was signed at The Andersons Conference Center in Maumee, on Ohio Agriculture Day, March 21.

Farm Bureau, in cooperation with Ohio Corn Growers and other agricultural organizations, was a strong supporter of the bill, sponsored by Sen. Larry Mumper, (R-Marion). Rep. Keith Faber, (R-Celina), sponsored the House version. SB 144 provides tax incentives for farmers to take an equity position in an ethanol or renewable fuels plant. It also provides tax abatements under the Air Quality Development Authority. Tax credits of up to $5,000 for participating farmers and other investors provides farmers a chance to share in both the risk and the profit of an ethanol plant. The tax incentives in SB 144 are geared toward helping build a farmer-owned cooperative. Corn producers would take an equity position, which allows them to market their corn through the facility. At the end of the year, some of the plant profits are returned to the farmer-investors.

"Investment would not be limited to those farmers surrounding the facility; farmers from around the state can participate and work to ensure the ultimate success and hopefully expansion of the ethanol industry," according to Scott Williams, OFBF director of state legislative affairs.

The Governor also has directed the Department of Development to provide incentives such as low-interest and tax-free bonds, site improvement assistance, machinery/equipment tax credits and water development assistance.

Ohio is currently the largest corn producing state without an ethanol plant. Last year, Ohio ranked sixth nationally in corn production and there are nearly 40,000 farmers who raise corn. It is estimated Ohio uses more than 200 million gallons of ethanol-blended fuels a year.

Besides increasing profit opportunities for corn farmers, one 40 million gallon ethanol plant would add at least $70 million a year to Ohio's economy, according to an Ohio State University study.

"Senate Bill 144 offers Ohio a chance to reduce and ideally eliminate the need to import nearly 200 million gallons of ethanol annually. In addition to serving Ohio's own needs, with the emergence of markets to our east, Ohio is in position to become a major exporter of ethanol to neighboring eastern states as they seek a replacement for MTBE," Williams said.

"By providing farmers around the state the opportunity to invest in and become part owner of an ethanol facility, you are decreasing their reliance on volatile crop prices as their sole source of income and balancing it with income derived from a successful ethanol plant," he said.

Caption: Gov. Bob Taft signed SB 144 on Ohio Agriculture Day. The bill allows farmers to invest in the construction of ethanol plants in Ohio. (Photo by Lynn Snyder)