The latest U.S. Department of Agriculture forecast calls for enough corn and soybeans to meet both food and fuel needs.
The May supply and demand report released on Friday based predictions for the 2008-09 marketing year on an expected corn crop of 12.1 billion bushels, down 7 percent from last year’s record crop.
USDA is expecting total U.S. corn use in 2008-09 to be 2 percent lower than the current marketing year, which ends in August. The report calls for reductions in feed and residual use and exports to more than offset a continued expansion in ethanol production.
Feed and residual use is projected down 14 percent as corn feeding declines with increased production of distillers grains, higher corn prices, and reduced red meat production. Corn exports are projected down 16 percent as U.S. supplies face increased world competition with increased foreign production and a sharp drop in EU-27 imports. Ethanol use is projected at 4 billion bushels, up 33 percent from 2007/08. The slowing pace of plant construction and expansion, and lower capacity utilization are expected to modestly dampen growth in ethanol corn use. With total corn use expected to exceed production by 635 million bushels, ending stocks are projected down 45 percent. At 763 million bushels, ending stocks would be the lowest since 1995/96.
Meanwhile, on the soybean side, production is expected to be up by 520 million bushels this year, but biodiesel production is expected to be only slightly higher in the coming marketing year. USDA is projecting biodiesel will use 15 percent of total soybean oil production in 2008-09, compared with 14 percent this year.
Colorado could soon be home to the world’s largest wind turbine factory. However, officials with the company building the facility is remaining tight-lipped about exactly where in Colorado it would be built.
You know the old expression: “no good deed goes unpunished.” Well, drivers in California who are trying to do the right thing and run their vehicles on cleaner fuels are getting hit up for not paying taxes… and more.
moves the biodiesel standard up to 5 percent a year from now, 10 percent by 2012, and finally, a whopping 20 percent by 2015. The measure enforces the higher mandate only during the warmer months of the late spring, summer, and early fall months in the northern state:
According to Senator Saxby Chambliss of Georgia, the ranking Republican on the Senate Agriculture Committee, the bill invests $320 million for new loan guarantee program for the development and construction of commercial-scale biorefineries; provides $300 million in the Bioenergy Program to provide assistance to biofuel production plants for the purchase of feedstocks; provides $118 million for biomass research and development efforts; reauthorizes and provides $250 million for grants and loan guarantees for renewable energy and energy efficiency projects; and authorizes a new program, the Biomass Crop Assistance Program to help producers transition to new energy crops for biofuel production.
Higher food prices have led to increasing calls for changes in the Renewable Fuels Standard (RFS) that was implemented as part the Energy bill just signed into law last December, which calls for 36 billion gallons of annual renewable fuel use by 2022.