Feed Outlook No. (FDS-07D01) 20 pp

May 2007

Ethanol Expansion in the United States: How Will the Agricultural Sector Adjust?

by Paul Westcott

A large expansion in ethanol production is underway in the United States. Cellulosic sources of feedstocks for ethanol production hold some promise for the future, but the primary feedstock in the United States currently is corn. Market adjustments to this increased demand extend well beyond the corn sector to supply and demand for other crops, such as soybeans and cotton, as well as to U.S. livestock industries. USDA's long-term projections, augmented by farmers' planting intentions for 2007, are used to illustrate anticipated changes in the agricultural sector.

Keywords: Ethanol, corn, soybeans, distillers grains, livestock, cattle, hogs, poultry

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