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Are Biofuels Causing Tension in the Livestock Markets?

Demand for corn as biofuel (ethanol) and livestock feed is putting tension into agriculture.
U.S. Corn Prices and Monthly Price Variation
American Feed Industry Association, USDA

The weather is seriously stressing many crops this year. Corn, specifically, is also being stressed because of the demand for biofuel (ethanol) and livestock animal feed.

Dr. Thomas E. Elam, FarmEcon LLC, released a presentation and detailed analysis of why the USA Renewable Fuel Standard, in this current weather and economic environment, needs to have flexibility in its application [background via EPA]. Dr. Elam's key point: Ethanol policy has increased and destabilized corn and related commodity prices [detailed analysis paper PDF] [summary slide deck PDF].

Dr. Bob Wisner, Iowa State University, and Joel Newman, President and CEO of American Feed Industry Association, provide some highlights of the report titled "Future Patterns of U.S. Grains, Biofuels, and Livestock and Poultry Feeding". This is a another report that highlights the conflicts of having corn being used as a feed grain and a source of energy (ethanol): "Biofuels: A Major Driver of the Changing Feed Cost Environment" is one of the first executive summary points [audio] [report PDF].


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