Agricultural Economic Report No. (AER-667) 16 pp

May 1993

Ethanol and Agriculture: Effect of Increased Production on Crop and Livestock Sectors

Expanded ethanol production could increase U.S. farm income by as much as $1 billion (1.4 percent) by 2000. Because corn is the primary feedstock for ethanol, growers in the Corn Belt would benefit most from improved ethanol technology and heightened demand. Coproducts from the conversion process (corn gluten meal, corn gluten feed, and others) compete with soybean meal, so soybean growers in the South may see revenues decline. The U.S. balance of trade would improve with increased ethanol production as oil import needs decline.

Keywords: ethanol, ethanol production, corn, crop impacts, livestock impacts

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