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

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

Abstract

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.

Suggested Citation

  • Yu, Tun-Hsiang (Edward) & Hart, Chad E., 2009. "Impact of Biofuel Industry Expansion on Grain Utilization and Distribution: Preliminary Results of Iowa Grain and Biofuel Survey," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46847, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeana:46847
    DOI: 10.22004/ag.econ.46847
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    References listed on IDEAS

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    1. Amani Elobeid & Simla Tokgoz, 2008. "Removing Distortions in the U.S. Ethanol Market: What Does It Imply for the United States and Brazil?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 918-932.
    2. 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 Archive 11791, Iowa State University, Department of Economics.
    3. Simla Tokgoz & Amani Elobeid & Jacinto Fabiosa & Dermot J. Hayes & Bruce A. Babcock & Tun-Hsiang (Edward) Yu & Fengxia Dong & Chad E. Hart, 2008. "Bottlenecks, Drought, and Oil Price Spikes: Impact on U.S. Ethanol and Agricultural Sectors," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 604-622.
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    5. Trostle, Ronald, 2008. "Factors Contributing to Recent Increases in Food Commodity Prices (PowerPoint)," Seminars 43902, USDA Economists Group.
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    7. Koizumi, Tatsuji & Ohga, Keiji, 2006. "Impacts of the Chinese Fuel-Ethanol Program on the World Corn Market: An Econometric Simulation Approach," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 8, pages 1-15.
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    1. Qasmi, Bashir A. & Hamda, Yonas & Fausti, Scott W., 2010. "The 2005/06 South Dakota Grain Marketing Patterns Study: A Grain Elevator Survey Report," Economics Research Papers 60463, South Dakota State University, Department of Economics.

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