Grassroots

The Voice of New York Farm Bureau

February 2007

Farmers planting more corn to meet demand

The demand for renewable fuels generated by consumers and the government is swaying farmers to plant more corn over their usual commodities, such as soybeans or cotton. Some in the Midwest are even ending their longtime practice of rotating plantings of soybeans one year and corn the next, opting to grow corn in consecutive years. Livestock farmers also are turning pastures into corn fields, according to an article in Business Week.

Prices for corn are over $4, reaching highs not seen in the last decade. At least 6 million to 8 million more acres of corn will be needed to supply ethanol plants, analysts say.

Ethanol production is expected to double as new plants are built to turn corn into the gasoline additive -- from around 5 billion gallons now to 11 billion gallons, according to industry estimates.

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