False information fueling ethanol’s effect on corn prices during drought
Contact: Joshua Morby - 414.344.1733
– Severe drought conditions and a reduced harvest are likely to drive corn
prices up in short order, not the fact that a portion of America’s corn crop is
used for ethanol production.
producers are also adjusting their output under these extreme weather
conditions. According to the Commodity Research Bureau, U.S. ethanol production
in the past three reporting weeks fell by a total of 6.8 percent to a nine-month
low at the end of June.
of the Wisconsin corn crop is still used for animal feed and consumption than
for ethanol production,” says Josh Morby, executive director of the Wisconsin
Bio Industry Alliance. “And what many people fail to realize is that while a
portion of the corn grown by American farmers is used for ethanol production, a
co-product of that process is dry distillers grains (DDGs), which is also used
as a nutrient-rich animal feed.”
to the University of Minnesota, approximately 3.2 to 3.5 million metric tons of
DDGs are produced in North America each year, which are in turn sold primarily
to farmers as livestock feed.
bushel of corn is equal to 56 pounds. When used for ethanol production, one
bushel of corn produces 2.8 gallons of ethanol and 11 pounds of distillers
grains, a feed not only used by American livestock farmers but that is also
exported to farmers around the world.
production is not to blame for increased corn prices,” says Morby. “This is
purely a weather-related situation, in which drier-than-normal and
warmer-than-normal conditions have hit the Corn Belt and many Wisconsin
Wisconsin Bio Industry Alliance is a diverse group of businesses, environmental
groups and statewide and local organizations that have come together to build
both public and legislative awareness of the Bio Industry in Wisconsin.
For more information about the Alliance, or to find out how to join, please
visit our website: http://www.wisconsinbioindustry.com.
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