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Impact of Biofuel Industry Expansion on Grain Utilization and Distribution: Preliminary Results of Iowa Grain and Biofuel Survey

  • Yu, Tun-Hsiang (Edward)
  • Hart, Chad E.

This paper examines the impact of biofuel expansion on grain utilization and distribution at the state and cropping district level as most of grain producers and handlers are directly influenced by the local changes. We conducted a survey to understand the utilization and flows of corn, ethanol and its co-products, such as dried distillers grains (DDG) in Iowa. Results suggest that the rapidly expanding ethanol industry has a significant impact on corn utilization in Iowa. Comparing to the earlier survey results, ethanol plants drew a considerable amount of corn away from traditional destination markets, such as feeders or export markets. A major portion of corn supplies came from in-state sources, while the sales of Iowa ethanol and DDG were dominated by out-of-state buyers.

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Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46847.

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Date of creation: 16 Jan 2009
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Handle: RePEc:ags:saeana:46847
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  1. Gervais, Jean-Philippe & Baumel, C. Phillip, 1996. "The Iowa Grain Flow Survey: Where and How Iowa Grain Producers Ship Corn and Soybeans," Staff General Research Papers 11802, Iowa State University, Department of Economics.
  2. Torre Ugarte, Daniel de la & English, Burton C. & Jensen, Kimberly L., 2007. "Sixty Billion Gallons by 2030: Economic and Agricultural Impacts of Ethanol and Biodiesel Expansion," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9709, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Trostle, Ronald, 2008. "Factors Contributing to Recent Increases in Food Commodity Prices (PowerPoint)," Seminars 43902, USDA Economists Group.
  4. Tokgoz, Simla & Elobeid, Amani & Fabiosa, Jacinto F. & Hayes, Dermot J. & Babcock, Bruce A. & Yu, Tun-Hsiang & Dong, Fengxia & Hart, Chad E., 2008. "Bottlenecks, Drought, and Oil Price Spikes: Impact on U.S. Ethanol and Agricultural Sectors," Staff General Research Papers 12935, Iowa State University, Department of Economics.
  5. Martin Banse & Hans van Meijl & Andrzej Tabeau & Geert Woltjer, 2008. "Will EU biofuel policies affect global agricultural markets?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(2), pages 117-141, June.
  6. Elobeid, Amani E. & Tokgoz, Simla, 2007. "Removing Distortions in the U.S. Ethanol Market: What Does It Imply for the United States and Brazil?," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9808, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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