USDA’s Economic Research Service last week released its latest long term forecasts for the food and agricultural sector. For ethanol, USDA projects increases in corn-based ethanol production to slow over the next few years, but ethanol demand is expected to remain high and affect the production, use, and prices of farm commodities throughout the sector. According to the report, “continued …
Corn Growers Defend Ethanol Against Attacks
The nation’s corn growers called comments made Wednesday by a coalition of radical environmental groups “just another attempt to prevent the ethanol industry from decreasing the United States’ dependence on foreign oil.” “These environmental groups are stirring up fear for the American public at a time when Americans are already struggling due to the faltering world economy, job losses and …
Economist Says Biofuels Demand Will Drive Crop Prices
An agricultural economist speaking to members of the nation’s largest general farm organization meeting in San Antonio this weekend said crop prices this year will be driven by demand for biofuels. Jim Sullivan of Informa Economics in Washington, D.C. told a crop outlook seminar at the American Farm Bureau Federation 90th annual meeting that the global recession will mean weakening …
Corn Growers Updated on VeraSun
The National Corn Growers Association (NCGA) is keeping corn growers updated about the status of pending contracts with the bankrupt ethanol producer VeraSun. Attorneys for NCGA say that VeraSun generally seems to be handling grower contracts based on the original ownership of the ethanol facilities, but growers need to check with the plants directly to determine what arrangements can be …
Comments Sought on Ethanol Specific Corn
The U.S. Department of Agriculture is seeking comments on a petition to deregulate corn that has been genetically engineered to produce a microbial enzyme that facilitates ethanol production. USDA’s Animal Plant Health Inspection Service (APHIS) has regulated the corn, developed by Syngenta, since 2002. If approved, the petition would allow the corn, which goes by the name Event 3272, to …
USDA Lowers Corn Usage for Ethanol
The latest World Agricultural Supply and Demand Estimate (WASDE) from USDA projects less corn being used for ethanol this year. According to the report released this morning, ethanol use for corn was lowered by 300 million bushels lower “as prospects for blending above federally mandated levels decline.” Financial problems for ethanol producers are reducing plant capacity utilization for existing plants …
Court Rules VeraSun Can Reject Corn Contracts
Corn growers were happy to have their day in U.S. Bankruptcy Court Tuesday for VeraSun Energy Corporation but the outcome was not favorable. As expected, bankruptcy law and the ruling will allow VeraSun to reject any contracts that are economically disadvantageous to VeraSun, including corn growers’ contracts. According to National Corn Growers Association (NCGA) Chairman Ron Litterer of Iowa, they …