The Volumetric Ethanol Excise Tax Credit (VEETC), ceased operations on December 31, 2011. Originally set up to support the ethanol production it has now been relegated to the history books. Historically, the credit played an important role in ensuring the profitability of ethanol production, and it therefore indirectly affected corn prices as well. However, because high gasoline prices have made ethanol competitive on its own and since ethanol consumption mandates guarantee minimum production volumes, elimination of the credit is expected to have minimal impact on the production of ethanol and the demand for corn as a biofuel feedstock. Read more ...
