.

Source: USDA Amber WAves

U.S. ethanol expansion driving changes throughout the agricultural sector

Explosive growth of ethanol production brings adjustments to U.S. agriculture that reach far beyond the corn sector.

U.S. ethanol production climbed to almost 5 billion gallons in 2006, up nearly 1 billion gallons from 2005. Despite the speed and magnitude of this increase, the industry is stepping up the pace of expansion, with production expected to top 10 billion gallons by 2009.

The explosive growth of U.S. ethanol production is being felt by nearly every aspect of the field crops sector—domestic demand, exports, prices, and the allocation of acreage among crops—as well as the livestock sector, farm income, government payments, and food prices. Additionally, issues have been raised regarding possible effects on natural resources resulting from the ethanol expansion and changes in farmers’ cropping choices. Adjustments in the agricultural sector to this strong demand are underway and will continue as interest builds in renewable sources of energy to lessen dependence on foreign oil.

Full article: http://www.ers.usda.gov/AmberWaves/September07/Features/Ethanol.htm

The news item on this page is copyright by the organization where it originated - Fair use notice

Other news from this source