New York State corn growers are making adjustments in their future production plans due to the recent upturn in commodity prices.

Corn already has a significant position in the state’s agriculture profile due to the prominence of dairy farming, and about two-thirds of the state’s corn crop is grown for silage with the remaining third going for grain.

Corn prices climbed from about $ 2.50 a bushel late last September, and now hover above $4 a bushel. Increased demand comes both from new ethanol production and the loss of feed crops due to early summer flooding in central upstate areas. “The price rise last year helped us catch up with cash flow, because the input costs for corn production have greatly increased over the past two years,” said Buddy Richardson, whose family business, T & P Sales in Vernon Center, offers bulk feed sales and delivery, equipment for custom harvesting, and insecticide and herbicide sales.

Richardson, a farmer of 20 years, also raises corn and small grain crops on about 1,000 acres.

Before the prices rose, Richardson invested in both a grinder/mixer and a new grain delivery truck in 2005 to add value to the basic commodity sold to dairy farmers in a roughly 35-mile radius. He had also developed ancillary corn products, such as bag feed and fuel for corn stoves.

The national push towards sustainable energy production through increased use of ethanol will give New York’s corn growers a new option in the marketplace, especially with two ethanol production facilities slated to come online in 2007.

Northeast Biofuels, which will use the former Miller Brewing Company facility in Oswego County, and Western New York Energy in Orleans County are projected to produce 100 million and 50 million gallons of ethanol per year, respectively. Empire Biofuels is planning a third ethanol facility to be built in Seneca County.

The current percentage of national ethanol use is 10 percent and will move to 85 percent as soon as market forces dictate and infrastructure needs are met, said Jeff Williams, NYFB Deputy Director of Public Policy.

Geography will play an important role in this alternate fuel development, he explained.

“The goal is to grow as much corn or any renewable feedstock near the ethanol plants that are located closest to demand for fuel, which means the East Coast,” Williams said. Ethanol production provides a valuable by-product, dried distillers grains, which makes excellent cattle feed. “Dairy gets back feed it needs,” he added.

Richardson views ethanol not only as another potential corn buyer, but as an environmentally safe way to lessen dependence on foreign oil. He notes, however, that growers still have a lot to learn about what’s expected in terms of corn quality for ethanol use.

“It has to be fermented, unlike feed corn,” he said, and noted one seed company catalogue already identifies a variety as having “high extractable starch.”

“We will strive to grow corn that they would want if it becomes another market for us,” Richardson added.

As the new growing season begins, many growers are considering how to take advantage of the price hike and new market opportunities.

However, disadvantages to a sudden increase in corn production include lack of suitable land, necessary and expensive harvesting equipment, and adequate storage facility, said John W. Lincoln, NYFB President, who operates a 200-head dairy herd on 500 acres in Bloomfield. He grows enough corn for his own silage and grain needs.

He predicts that as more corn is grown in the Midwest and Brazil, its price will decrease. “The distillers grains are also a good source of protein for dairy and will help offset some of the feed cost,” Lincoln added.

Growers such as Richardson will be making every acre of corn more productive to take advantage of higher prices. Besides using new genetically modified seeds, he closely monitors soil samples to determine what the ground needs for optimal output. “We can also increase corn acreage by decreasing our small grains,” Richardson said.

“I don’t believe there’s enough good land sitting idle in central New York. Most profitable land is already being used, including dairy farms, so farmers will get more corn by switching crops,” he added.

Dawn Richardson noted that storage will continue to be an issue because corn prices at harvest are lower than during the winter months.

“If you have no storage, you can’t take advantage of timing in prices,” she added. The larger issue of increasing an economic and sustainable energy supply is especially crucial for agriculture, said Lincoln. “Any form of alternate energy, whether wind turbines, methane or ethanol, is exciting for farmers, and agriculture’s ability to produce that energy is good for agriculture overall,” he added.