February 13, 2008

California's corn output jumps 98 percent, fueled by ethanol demand

The heightened demand for ethanol last year had driven California's bumper corn production, which jumped by 98 percent, analysts said.

The state reported a total corn harvest of 1 million tonnes against the 508,000 tonnes in 2006, agriculture officials announced.

Experts said that the key factor in boosting the state's corn output was the strong demand for ethanol.

Growing demand from China, India and other Asian countries and the increasing need for biofuels have fueled corn prices, which also encouraged corn farmers to plant more corn.

Currently, corn is around US$5 a bushel. Three or four years ago, it was under US$2 a bushel, Tom Koehler, vice president of Sacramento-based Pacific Ethanol, said.

California's bumper harvest is just a fraction of the current boom in the US corn belt. Farmers in Iowa and Indiana grew more corn than ever in 2007 in response to demands from the ethanol industry.

Jack Rutz, deputy director of the USDA National Agricultural Statistics Service, said that while the amount of corn produced in California varies from year to year, the yield per acre is consistently high since the state does not have to worry about droughts and freezes.

Harvest last year was 180 bushels per acre, a record high, compared to 165 bushels per acre in 2006, Rutz explained.