Iowa Farmer Today 10-31-07 Bioeconomy may transform Iowa’s future By Gene Lucht, Iowa Farmer Today Once upon a time, Iowa farmers started making and at least attempting to sell a product they called gasohol. Born in the late 1970s --- when oil prices were soaring and corn production was climbing as well --- the idea was to develop a new product for Midwestern crops and reduce the nation’s dependence on oil imports. It really started with an earlier effort to coax high-fructose syrup out of corn, according to Iowa Secretary of Agriculture Bill Northey, a farmer and former National Corn Growers Association president. “That started us thinking more about the components of the crop,” Northey explains. “And, one thing led to another.” Today, gasohol has graduated to ethanol, as well as E-85, biodiesel, and various lubricants and fabrics made from starch and other plant-based items. Over the horizon are myriad opportunities for items, such as cellulosic ethanol, as well as plant-based pharmaceuticals and other unexplored ideas. Call it the biofuture. “This is going to happen,” says Wendy Wintersteen, dean of the College of Agriculture at Iowa State University. The bigger question, Winstersteen says, is how this biofuture will unfold and whether Iowa and other Midwestern states will make the most of what she views as a unique opportunity to transform the culture, the economy and even the landscape. Northey agrees. The key is farmers and agribusiness are looking at various components of crops and are trying to see how they can better use those components, he adds. “It really is kind of a sea change of attitude concerning the components of the crop,” he says. “I see a bioeconomy that is very broad in its application in Iowa,” says Wintersteen. “We will move beyond the issue of fuels.” Still, in the short term, fuels are fueling the change. The change is happening rapidly, at a speed that has led to some backlash against using food crops for fuel and at a speed that could lead to short-term over-supply and cash-flow problems for a still-fledgling industry. The debate over the future is beginning to rage, but Wintersteen has one very heavy hitter in her philosophical corner. Norman Borlaug, the 93-year-old former Nobel Peace Prize Laureate who founded the World Food Prize, said it is not a matter of food vs. fuel, and it isn’t a matter of whether or not to push new ag technology. “As I look on these advancements I can’t be despondent,” Borlaug told researchers and policy-makers gathered for the recent World Food Prize Symposium. “I have to be optimistic.” For farmers in Iowa, there are several important points, Wintersteen and Northey say. One is corn-based ethanol and soy-based biodiesel aren’t going away anytime soon, although it is possible the fast-growing markets for those products could experience growing pains as prices and supplies fluctuate. A second point is we don’t know whether ethanol or corn will be the product or crop of choice for fuel a generation from now. Much of the talk now centers around ethanol made from cellulosic material, but that could mean cornstalks, cobs, switchgrass, wood pulp or any of several dozen other products. That could lead to more corn being grown in Iowa in the short term, but eventually less corn being grown as other cellulosic crops take hold. Wintersteen says that could actually mean more livestock (as researchers learn how to better use crop components or ethanol by-products for feed) and different crops (such as switchgrass) being grown. Those items could change the landscape. “In the old days — two years ago — the only way to get conservation changes was through government farm programs,” Wintersteen says. “Now, we’re looking at the possibility of the market leading to more conservation.” That leads to a third point. Wintersteen and Northey agree policy-makers will be faced with numerous decisions in the coming few years. Money is needed for research. Governments may need to foster new and fragile industries. The business climate needs to encourage experimentation and growth. And, efforts may be needed to encourage local ownership or investment. Of course, the biofuture may look different in other parts of the country or the world. Speaking at the recent World Food Prize international symposium, Zhangliang Chen, president of the China Agricultural University in Beijing, said in China sweet sorghum could become the crop of choice for cellulosic fuels and products. In Africa and India, it could be jatropha. In Brazil, it could continue to be sugar cane. In Iowa, it could be switchgrass. He added a limiting factor in many parts of the world will be water. Because of that potentially limiting factor, it is likely many researchers will be looking at developing plants that require less water or are more drought-resistant.