Iowa StateUniversity's Center for Rural and Agricultural Development recently released a new report outlining potential impacts of ethanol production on the grain and livestock sectors. It is entitled, “The Long-Run Impact of Corn-Based Ethanol on the Grain, Oilseed, and Livestock Sectors: A Preliminary Assessment”.

According to the report, the ongoing growth of corn-based ethanol production raises some fundamental questions about what impact continued growth will have on U.S. and world agriculture.

For example, study analysts project that U.S. ethanol production could reach 31.5 billion gallons per year by 2015, requiring annual corn production to increase from 11 billion bushels to about 15.6 billion bushels.

That means pork and poultry production could decline with higher corn prices and increased utilization of corn by ethanol plants.

Report authors add that these results should not be viewed as a prediction of what will eventually materialize. But rather, the results indicate a logical end point to the current incentives to invest in corn-based ethanol plants.

For more information, or to view the complete report, link to:

Source: Iowa StateUniversityCenter for Rural and Agricultural Development