Federal Ethanol Policies Cause Severe Harm to Virginia’s Economy

HARRISONBURG, VA – June 11, 2008 – A study commissioned by Virginia Poultry Federation (VPF) shows that federal mandates and subsidies for corn-based ethanol are having a harmful impact on Virginia’s economy.

The study, by noted agricultural economist Dr. Thomas Elam, estimates that a federal tax credit of $0.51 per gallon and a nationwide mandate to add nine billion gallons of ethanol to motor gasoline during 2008 will cause a net loss to Virginia’s economy of $863 million this year. The study attributes the economic losses to increased production costs for livestock and poultry producers and higher food costs for consumers.