April 26, 2007

Ethanol demand drives huge corn plantation in Bay states 

The surge in demand for ethanol which is boosting prices for corn has its production in US bay states Pennsylvania, Virginia and Maryland seen to grow by 200,000 acres this year.

The US Department of Agriculture (USDA) predicts that more than 90 million acres of corn will be planted nationwide this year, a 15 percent increase from last year, and the largest since 1944.

In the Bay region, the report projected corn acreage would increase from 1.35 million acres in 2006 to 1.45 million acres this year in Pennsylvania, from 490,000 to 550,000 acres in Maryland and from 480,000 to 520,000 acres in Virginia.

The price per bushel has risen to nearly US$4, double than farmers were getting last year.

Although a boon for farmers, the surge in production has raised concern among scientists because corn "leaks" the most nitrogen per acre of any crop. Some agricultural scientists expect corn acreage to continue rising, possibly resulting in an additional 1 million acres to be planted in the Bay watershed over the next several years.

Scientists estimate that increased plantation could result in an additional 15 million to 16 million pounds of nitrogen runoff a year--offsetting a quarter of the nitrogen reductions achieved by the region since 1985--unless efforts are stepped up to promote cover crops and other conservation practices.

Meanwhile, US Agriculture Secretary Mike Johanns said in March that he would not allow the early release of land enrolled in the Conservation Reserve Program (CRP), which pays farmers to take marginal and environmentally sensitive lands out of production, without penalty.

Farmers, livestock groups and the ethanol industry have been eyeing the millions of acres of land in CRP for corn production, a prospect that had alarmed environmental groups because of the habitat and water quality benefits attained from the program.

Demand for ethanol is growing due to government's incentives in using alternative fuels. The call for using alternative materials such as switchgrass for cellulosic ethanol is also increasing to alleviate fears of a corn shortage supply.