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The demand for corn to make ethanol is expected to keep growing, which is creating challenges for livestock producers.

Both farmers and ranchers are meeting this week in Salt Lake City for the 88th American Farm Bureau Federation annual meeting and biofuels has already been the main topic of discussion.

Calling ethanol a “bull on the loose,” USDA Chief Economist Keith Collins told producers that the next three to four years will be a critical period of adjustment in both the ethanol industry and the livestock industry because of higher feed prices.

Collins says that we can expect to see growth in corn yield per acre, more corn acreage, higher corn prices, the development of new economically feasible feedstocks and products replacing some corn or meal in feed.

“Dried distillers grains (DDGs) have to improve in quality and be more easily digested,” he said.

However, demand for biofuels is expected to lead to lower revenues for livestock producers this year, according to AFBF livestock economist Jim Sartwelle and other industry experts who addressed the conference.

“All protein producers are going to face a challenging year in 2007 when it comes to increasing feed costs,” said Sartwelle. “We are sure to see producers limiting the size of their production capacities because it just doesn’t pay to keep animals around with $3.50-per-bushel corn.”

Farm Bureau representatives will be making policy decisions this week, the “marching orders” for the organization this year, and resolutions concerning biofuels are on the docket.

Read more from the Farm Bureau meeting:
AFBF website
Highlights from AgWeb
Libby Quaid, Associated Press

Georgia’s first ethanol plant broke ground this week in Mitchell County.

First United Ethanol, LLC – or FUEL, as it is better known – has been in the works for almost two years, according to chairman Murray Campbell, who says they will import corn from the midwest to produce ethanol initially.

“Even though our facility in the corn belt, we have a viable plan to meet our supply needs to operate a 100 million gallon facility by bringing in corn on rail shipment, and hopefully over time to encourage local production.”

Campbell thinks that within 5-7 years they will be able to supply the plant locally, “which will be a huge benefit to our row crop farmers in southwest Georgia.”

The company hopes to have the plant on-line by Spring of 2008.

U.S. Senators Johnny Isakson and Saxby Chambliss attended the groundbreaking Wednesday along with hundreds of other dignitaries and well-wishers.

Read more from the Moutrie Observer and Dow Jones.

Lester Brown, founder of the Earth Policy Institute, held a press conference with reporters Thursday to warn that the government is underestimating the amount of corn that will be needed for fuel by next year.

According to the Associated Press, Brown says nearly twice as much corn as the government has estimated will be needed from the 2008 harvest to feed the ethanol plants that will be online by then. He blamed the lag on the failure of industry trade groups to keep up with development of ethanol plants.

According to the Earth Policy Institute’s data, U.S. ethanol distilleries now online or in the works will pull an estimated 139 million tons – or 5.5 billion bushels – of corn from the 2008 corn harvest to produce fuel for automobiles.

The government in a February report estimated ethanol plants would use about 60 million tons – or 2.4 billion bushels of corn.

USDA’s chief economist is skeptical about the institute’s numbers and the Renewable Fuels Association questions the criteria used by Earth Policy Institute, saying some plants in planning stages included in the group’s estimates may never be built. Both say that the rapid expansion in the industry is making it more difficult to make even short term projections.

Brown’s answer is for the U.S. government to declare a moratorium on the construction of new ethanol plants until the impact of increased corn usage can be determined.

Read the full story from AP.

Total U.S. ethanol production for 2006 is expected to be almost 5 billion gallons, but it will be a while yet before the official numbers are calculated.

The latest figures from the Energy Information Administration are for October at 333,000 barrels per day (b/d), which is equal to September’s record production.

According to the Renewable Fuels Association, the U.S. ethanol industry was averaging 310,000 b/d of production through October, an annualized volume of 4.75 billion gallons. Industry estimates show ethanol production reaching 4.9 billion gallons for the year, an increase of more than 25 percent from 2005.

Read more from RFA.

The first Choice Destination for 2007 on “Discover Wisconsin” isn’t so much a destination as a way of getting there.

The latest episode of the state’s tourism television show focuses on Wisconsin’s role in the domestic fuels industry, specifically E85. According to the show’s website:

With car manufacturers like GM offering a variety of E85-friendly vehicles, the new fuel is helping residents get to their favorite Wisconsin drive-to destinations with more money in their pockets. E85 is often cheaper than traditional gasoline – and most drivers don’t see a noticeable difference in gas mileage. In addition, we’ll take a look at some General Motors E85/flex-fuel vehicles, and dispel some myths associated with the fuel. We’ll tour the Chevy plant in Janesville to learn about what makes their vehicles different from regular gasoline vehicles. Finally, we’ll unveil a very special way that we at Discover Wisconsin are committed to the use of E85 fuel.

“Live Green – E85” will air January 6 and 7 on stations in and around Wisconsin.