OTTAWA, Ontario--(BUSINESS WIRE)-- The Farms and Fuels Alliance (FFA) recognizes the government’s action to address the competitive disadvantage created by U.S. biofuel subsidies, including the 45Z production tax credit. The proposed 1.3x credit multiplier for Canadian-made ethanol is a meaningful step, but falls short of the evidence-based 1.4x minimum needed to level the playing field for domestic producers.
Ethanol powers Canada’s Clean Fuel Regulations, and demand continues to grow. Yet Environment and Climate Change Canada’s latest available data shows that just 38 per cent of the ethanol used to generate credits was produced domestically. Canada should be capturing more of the economic growth its own regulations create. In Ontario alone, ethanol production accounts for one in three bushels of corn grown in the province.
The proposed 1.3x multiplier is a step forward, not a substitute for a durable solution. Canadian ethanol producers need a minimum 1.4x multiplier and complementary measures. Canadian ethanol remains excluded from federal production incentives, while expanded compliance flexibility risks weakening the market signals needed to attract investment and create new demand for Canadian corn.
Building a stronger domestic biofuels industry hinges on supporting the farmers and ethanol producers who sustain it. We look forward to working with the government to secure a minimum 1.4x multiplier in the final amendments and deliver on its commitment to level the playing field for Canadian producers.
About the Farms and Fuels Alliance
The Farms and Fuels Alliance brings together Canadian corn farmers and domestic ethanol producers in support of a made-in-Canada biofuels sector. Together, our members purchase more than 158 million bushels of locally grown corn each year, support thousands of rural jobs across Ontario and Quebec, and have built a three-decade record of supplying reliable Canadian fuel.
