Rushville Republican

Agriculture

December 13, 2013

Low corn prices spark potential for increased ethanol demand

WEST LAFAYETTE — Low corn prices on the heels of near-record yields this year could mean increased demand from ethanol producers, export markets and biofuels consumers, Purdue Extension agricultural economist Chris Hurt says.

A proposal by the U.S. Environmental Protection Agency to reduce the amount of biofuels that oil companies must blend into gasoline and diesel from 18.15 billion gallons to 15.21 billion gallons in 2014 — including an implied reduction of corn ethanol from 14.4 billion gallons to near 13 billion gallons — initially appeared negative for corn markets.

But according to Hurt, even with the proposed reduction in the Renewable Fuel Standard, national corn use for ethanol might not drop below the 4.9 billion bushels that the U.S. Department of Agriculture has estimated.

“Now that three months of the marketing year have passed, there is growing evidence that corn usage for ethanol can reach, and even exceed, 4.9 billion bushels,” he said. “We have to remember that RFS volumes are a minimum and production of renewable fuels can always be higher.”

The primary demand for corn ethanol is the 10 percent blend with all gasoline sold in the U.S. The amount of ethanol needed to meet this demand depends on how much gasoline is consumed for the rest of this year and into next.

Hurt said he expected 2013 gasoline consumption to be near 133 billion gallons and slightly less for 2014.

“This means ethanol consumption will need to be about 13.2 to 13.3 billion gallons — a number that is above the EPA proposal and would require almost 4.9 billion bushels of corn,” he said.

Another area of potential corn ethanol demand is exports. Low corn prices will eventually mean lower ethanol prices, which makes U.S. ethanol more appealing to foreign buyers. It also means the U.S. can produce its own ethanol cheaper than importing it, thus creating domestic demand.

Text Only
Agriculture
  • USDA reminds farmers of 2014 Farm Bill Conservation Compliance changes WASHINGTON - Agriculture Secretary Tom Vilsack today reminded producers that changes mandated through the 2014 Farm Bill require them to have on file a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026). The Farm Bill

    July 25, 2014

  • Extension farm tour to feature organic vegetable production WEST LAFAYETTE - The organic vegetable production and fertility management practices at an Ohio farm will be showcased in a Purdue Extension tour of the operation near Cincinnati.The tour will be from 9 a.m. to noon Aug. 5 at EcOhio Farm, 2210 S. Mas

    July 18, 2014

  • ag-rv071814-soybean variety pic Gene discovery could lead to better soybean varieties for northern United States WEST LAFAYETTE – Researchers from Purdue University and the University of Nebraska-Lincoln have discovered a soybean gene whose mutation affects plant stem growth, a finding that could lead to the development of improved soybean cultivars for the nor

    July 18, 2014 1 Photo

  • U.S. farmers plant record soybean crop, less corn DES MOINES, Iowa (AP) — The nation’s farmers planted the largest soybean crop on record this year by devoting millions of acres of land to the crop that had been used for growing corn, the U.S. Department of Agriculture said Monday.Farmers planted 84

    July 3, 2014

  • Manure Management Field Day presents new technology NORTH MANCHESTER — The Wabash County Soil & Water Conservation District and the Conservation Cropping Systems Initiative will host a free Manure Management Field Day on July 29th at Brubaker Farms. The half-day program will address application techno

    July 3, 2014

  • Purdue, OSU assisting in ag meeting for Corn Belt farmers WEST LAFAYETTE — Purdue and Ohio State Universities are part of an organization that is sponsoring a meeting this summer to help Corn Belt farmers make their agricultural systems more resilient and sustainable.The Resilient Agriculture Conference Au

    June 27, 2014

  • Farm Credit supports Rushville City FD training efforts RUSHVILLE — Farm Credit Mid-America, an agricultural lending cooperative serving farmers, rural residents and agribusinesses throughout Indiana, Ohio, Kentucky and Tennessee, contributed $500 to the Rushville City Fire Department. The funds were used

    June 27, 2014

  • ag-rv062714-problem weeds pic Latest weed control advances in corn, cotton COLLEGE STATION — The latest strategies in managing problem weeds in corn and cotton were recently showcased at the 2014 Crop Tour at the Texas A&M University field laboratory near College Station that serves as a research and teaching platform for T

    June 27, 2014 1 Photo

  • Farm Credit salutes Rushville FFA graduating seniors RUSHVILLE — Farm Credit Mid-America, an agricultural lending cooperative serving farmers, rural residents and agribusinesses throughout Indiana, Ohio, Kentucky and Tennessee, contributed $500 to support the 2014 Rushville FFA banquet, themed “Legacy

    June 27, 2014

  • Purdue fruit, vegetable food safety course now offered online WEST LAFAYETTE - Purdue Extension is now offering in an online format a course covering food safety practices for fruit and vegetable growers.The course is based on a series of Good Agricultural Practices from A to Z workshops that were given in the

    June 20, 2014