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The Ethanol Decade: An Expansion of U.S. Corn Production, 2000-09

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  • Wallander, Steven
  • Claassen, Roger
  • Nickerson, Cynthia J.

Abstract

The recent 9-billion-gallon increase in corn-based ethanol production, which resulted from a combination of rising gasoline prices and a suite of Federal bioenergy policies, provides evidence of how farmers altered their land-use decisions in response to increased demand for corn. As some forecasts had suggested, corn acreage increased mostly on farms that previously specialized in soybeans. Other farms, however, offset this shift by expanding soybean production. Farm-level data reveal that the simultaneous net expansion of corn and soybean acreage resulted from a reduction in cotton acreage, a shift from uncultivated hay to cropland, and the expansion of double cropping (consecutively producing two crops of either like or unlike commodities on the same land within the same year).

Suggested Citation

  • Wallander, Steven & Claassen, Roger & Nickerson, Cynthia J., 2011. "The Ethanol Decade: An Expansion of U.S. Corn Production, 2000-09," Economic Information Bulletin 117982, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:117982
    DOI: 10.22004/ag.econ.117982
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    References listed on IDEAS

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    1. Livingston, Michael J. & Roberts, Michael J. & Rust, John, 2008. "Optimal Corn and Soybean Rotations," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6213, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Sampson, Gabriel S. & Al-Sudani, Amer & Bergtold, Jason, 2021. "Local irrigation response to ethanol expansion in the High Plains Aquifer," Resource and Energy Economics, Elsevier, vol. 66(C).
    2. Cheu, Sungmin & Gammans, Matthew, 2023. "The Effect of Ethanol Capacity on Cover Crop Use in the Midwest," 2023 Annual Meeting, July 23-25, Washington D.C. 335819, Agricultural and Applied Economics Association.
    3. Momm, H.G. & Porter, W.S. & Yasarer, L.M. & ElKadiri, R. & Bingner, R.L. & Aber, J.W., 2019. "Crop conversion impacts on runoff and sediment loads in the Upper Sunflower River watershed," Agricultural Water Management, Elsevier, vol. 217(C), pages 399-412.
    4. Zhang, Wendong & Irwin, Elena G. & Nickerson, Cynthia J., 2012. "The Expanding Ethanol Market and Farmland Values: Identifying the Changing Influence of Proximity to Agricultural Delivery Points," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124690, Agricultural and Applied Economics Association.
    5. Junpyo Park & John Anderson & Eric Thompson, 2019. "Land-Use, Crop Choice, and Proximity to Ethanol Plants," Land, MDPI, vol. 8(8), pages 1-14, July.
    6. Bigelow, Daniel & Borchers, Allison, 2017. "Major Uses of Land in the United States, 2012," Economic Information Bulletin 263079, United States Department of Agriculture, Economic Research Service.
    7. Sampson, Gabriel & Gardner, Grant, 2021. "Land Value Impacts of Ethanol Market Expansion Differ by Irrigation Status," 2021 Annual Meeting, August 1-3, Austin, Texas 313854, Agricultural and Applied Economics Association.
    8. Beckman, Jayson & Sands, Ronald D. & Riddle, Anne A. & Lee, Tani & Walloga, Jacob M., 2017. "International Trade and Deforestation: Potential Policy Effects via a Global Economic Model," Economic Research Report 262185, United States Department of Agriculture, Economic Research Service.
    9. Fausti, Scott W. & Van der Sluis, Evert & Qasmi, Bashir A. & Lundgren, Jonathan, 2014. "The Effect of Biotechnology and Biofuels on U.S. Corn Belt Cropping Systems: Updated Version," Economics Staff Papers 168202, South Dakota State University, Department of Economics.
    10. Jeremy G. Weber & Conor Wall & Jason Brown & Tom Hertz, 2015. "Crop Prices, Agricultural Revenues, and the Rural Economy," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 459-476.
    11. Fausti, Scott W. & Van der Sluis, Evert & Qasmi, Bashir A. & Lundgren, Jonathan, 2014. "The Effect of Biotechnology and Biofuels on U.S. Corn Belt Cropping Systems," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162468, Southern Agricultural Economics Association.
    12. Newes, Emily & Clark, Christopher M. & Vimmerstedt, Laura & Peterson, Steve & Burkholder, Dallas & Korotney, David & Inman, Daniel, 2022. "Ethanol production in the United States: The roles of policy, price, and demand," Energy Policy, Elsevier, vol. 161(C).
    13. Hoekman, S. Kent & Broch, Amber, 2018. "Environmental implications of higher ethanol production and use in the U.S.: A literature review. Part II – Biodiversity, land use change, GHG emissions, and sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 3159-3177.
    14. Ojeda, Jonathan J. & Volenec, Jeffrey J. & Brouder, Sylvie M. & Caviglia, Octavio P. & Agnusdei, Mónica G., 2018. "Modelling stover and grain yields, and subsurface artificial drainage from long-term corn rotations using APSIM," Agricultural Water Management, Elsevier, vol. 195(C), pages 154-171.
    15. Momm, Henrique G. & Bingner, Ronald L. & Moore, Katy & Herring, Glenn, 2022. "Integrated surface and groundwater modeling to enhance water resource sustainability in agricultural watersheds," Agricultural Water Management, Elsevier, vol. 269(C).
    16. Dinesh Shrestha & Jesslyn F. Brown & Trenton D. Benedict & Daniel M. Howard, 2021. "Exploring the Regional Dynamics of U.S. Irrigated Agriculture from 2002 to 2017," Land, MDPI, vol. 10(4), pages 1-16, April.
    17. Hitaj, Claudia & Suttles, Shellye, 2016. "Trends in U.S. Agriculture's Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass," Economic Information Bulletin 262140, United States Department of Agriculture, Economic Research Service.
    18. Xue, Xiaobo & Pang, YuLei & Landis, Amy E., 2014. "Evaluating agricultural management practices to improve the environmental footprint of corn-derived ethanol," Renewable Energy, Elsevier, vol. 66(C), pages 454-460.
    19. Gardner, Grant & Sampson, Gabriel S., 2022. "Land Value Impacts of Ethanol Market Expansion by Irrigation Status," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3), September.
    20. Schweizer, Heidi, 2017. "Impacts of the U.S. Ethanol Boom on Corn Transportation Markets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258513, Agricultural and Applied Economics Association.
    21. Schaible, Glenn D. & Aillery, Marcel P., 2012. "Water Conservation in Irrigated Agriculture: Trends and Challenges in the Face of Emerging Demands," Economic Information Bulletin 134692, United States Department of Agriculture, Economic Research Service.

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    Keywords

    Environmental Economics and Policy; Land Economics/Use; Resource /Energy Economics and Policy;
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