There may finally be a deal to break the impasse on the farm bill.
Farm bill conferees have reportedly solved most of their differences and can now move forward and finish the bill. A Reuters article published Friday afternoon reported that Sen. Tom Harkin, D-Iowa, said a tentative agreement on the farm bill was in reach now that funding sources have been identified to pay for a $10 billion increase in agricultural programs.
Part of the deal reportedly involves a cut in the current ethanol tax credit. The plan would reduce the tax credit from 51 cents per gallon to 45 cents. A new tax credit would be created as an incentive for cellulosic ethanol production, which would support the creation of fuels from grasses, wood and crop residues.