Washington, D.C., December 14, 2007—Yesterday the Senate passed the 2007 farm bill, the first major revision of agricultural policy in five years. "The $286 billion Senate version of the Farm Bill is a good deal for farmers, but a shabby one for taxpayers who foot the bill for this Congressional largesse," said Competitive Enterprise Institute Adjunct Fellow Fran Smith.

A boom in ethanol production is taking place today for variety of reasons. Undoubtedly, the most significant factor is government support and subsidies for biofuel production. The rationale for subsiding biofuels arises from a convergence of security, environmental, and nationalistic concerns, which has led policy makers to endorse stiffer mandates and increased subsidies.