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CHAPTER THIRTEEN
Ethanol
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Exhibit 13-10

Percentage of U.S. Corn Used to Produce Ethanol and Price per Bushel, 1980-2007
Year Percent of Corn Used Corn price
(dollars per bushel)
Event
1978 Energy Tax Act of 1978 exempted 10 percent ethanol blends from the federal excise tax
1980 0.5% $3.11 Crude Windfall Tax Act of 1980 extended the 40 cent per gallon tax credit
1981 1.1% $2.50
1982 1.7% $2.55
1983 3.8% $3.21
1984 3.0% $2.63 Tax Reform Act of 1984 raised the tax credit for ethanol to 60 cents per gallon
1985 3.1% $2.23
1986 3.5% $1.50
1987 3.9% $1.94
1988 5.8% $2.54
1989 4.3% $2.36
1990 4.4% $2.28 Omnibus Budget Reconciliation Act of 1990 lowered the subsidy for ethanol to 54 cents per gallon
1991 5.3% $2.37
1992 4.5% $2.07
1993 7.2% $2.50
1994 5.3% $2.26
1995 5.3% $3.24
1996 4.6% $2.71
1997 5.2% $2.43
1998 5.4% $1.94 Transportation Efficiency Act of the 21st Century lowered the income tax credit for ethanol use to 51 cents per gallon by 2005
1999 6.0% $1.82
2000 6.3% $1.85
2001 7.4% $1.97
2002 11.1% $2.32
2003 11.6% $2.42
2004 11.2% $2.06
2005 14.4% $2.00 Energy Policy Act of 2005 established the Renewable Fuel Standard
2006 20.1% $3.04
2007 24.5% $4.00

Sources: U.S. Department of Agriculture–Economic Research Service and U.S. Energy Information Administration.

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