May 22, 2007

USDA: Ethanol expansion to certainly affect US agriculture

As the rage for ethanol continues in the US, agriculture has to set aside its priorities and adjustments to pave way for the seemingly lucrative biofuels industry which has also gained attention from other agri-industries from other countries.

Corn being the primary feedstock for ethanol, market adjustments for the grain has been made to accommodate both the ethanol and agriculture industries. However, it is no hidden fact that the adjustments have adversely affected concerned segments such as food, farm income and even government payments.

The United States Department of Agriculture- Economic Research Service has created an analysis on how US agriculture and other industries should amend with the amazing increase of interest on renewable fuels, particularly of corn-based ethanol. The US government, bent on removing its dependence on foreign oil, is focused on making ethanol work without affecting other significant industries such as agriculture and food.

For more of the USDA report, please click here.