Ethanol leaders request Farm Credit expansion

By | January 01, 2008
Iowa's renewable fuels industry leaders recently wrote letters to several U.S. senators, calling for them to support an amendment added to the Farm Bill by Sen. Saxby Chambliss, R-Ga., that would expand Farm Credit Services' lending authority to renewable fuels facilities. Currently, Farm Credit can only lend to a start-up ethanol or biodiesel plant if the facility is 50 percent farmer-owned. The letter pointed out that this may have been reasonable in the early days of the renewable fuels industry, but now bigger, more expensive plants are being built, "making it impossible to achieve 50 percent farmer ownership."