12/29/08 WSU study sees direct subsidies for biofuel crops as too costly

Washington Ag December 29, 2008 In a report delivered to state lawmakers, Washington State University economists conclude that Washington has relatively strong long-term potential in biofuels, but weak short-run prospects. The Washington State Legislature had directed WSU to conduct the study of the biofuel and feedstock markets in the state and to recommend incentives for developing the state's biofuel markets. Professor Jonathan Yoder, who led the team of WSU economists, says one thing they are not recommending is the direct subsidization of biofuel crop production. Yoder: "Now we are not suggesting that agricultural producers don't consider biofuel and energy crops for production, it is just that we were asked to make recommendations for public policy, and given current market conditions we found that it would be relatively expensive for the state, either to taxpayers or to consumers, to make kind of existing energy crops in existing markets in Washington state competitive." Yoder says if the state wants to promote biofuel markets it should focus on existing biomass. That story tomorrow. I'm Bob Hoff.