Agri News, MN
02-27-07
Buhr sees challenging corn use picture
By Carol Stender
Agri News staff writer
WILLMAR, Minn. -- University of Minnesota economist Brian Buhr painted a
challenging picture for corn use between the ethanol industry and livestock
producers at the Strategic Animal Ag Conference Friday.
The ethanol industry could use up to 34 percent of the crop by 2010, Buhr told
farmers and ag leaders at the Willmar event. Tight corn supplies could cause
some livestock farmers to exit the industry, he said. Those who remain will
eventually find alternative feed sources.
Buhr has talked to producers across the nation who say they will out-compete
others to meet their corn supply needs, he said.
His findings are national in scope, said Curt Zimmerman. The MDA livestock
specialist said many Minnesota producers will not be as affected as other regions
from tight corn supplies since many livestock producers raise their own crops for
feed.
"We are diverse enough in Minnesota to use half of our corn for ethanol
production and half for livestock feed," Zimmerman said. "We have strong
support from the commodity groups when it comes to livestock industry needs."
The demand for corn-based ethanol could change in the future, said Simla
Tokgoz, Iowa State University international grain and ethanol analyst. Once
the national demand for ethanol is met, alternative fuel needs could be supplied
from other sources.
"It's not easy to make assumptions when the fuel oil market is so volatile," she
said.
The paradigm has to shift from one of food vs. fuel, said Erik Osmon, Bushmills
general manager.
"It's energy," he said.
Both House and Senate agriculture committee chairs have altered their ideas on
how government programs can assist the research and development of cellulosic
crops for alternate fuel sources. Seventh District Congressman and House Ag
Committee chairman Collin Peterson once wanted switchgrass and other
cellulosic crops raised on CRP, said Tom Meium, Peterson's ag specialist. Iowa
Senator and Senate agriculture chairman Tom Harkin had similar thoughts using
the CSP.
Legitimate questions were raised concerning how the crop would be grown and
harvested, Meium said. People questioned what would happen to nesting birds
during that time.
"The importance of research can't be over-estimated," he said.
There were no easy answers to questions on renewable fuel development and
how it will affect crop availability for livestock feed. The conference was
invaluable to get information to producers and ag leaders and prompt discussion,
Zimmerman said.
Livestock siting, ag and urban development and federal and state ag policy were
other issues discussed at the conference.