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High Crop Prices, Ethanol Mandates, and the Public Good: Do They Coexist

The U.S. Department of Agriculture recently released estimates that tell us the nation’s farmers are responding to high corn prices by planning a 15 percent increase in their corn acreage. If these intentions translate into actual plantings, and if growing conditions are at least reasonable, then 2007 corn production will be more than sufficient to meet all demands, and corn prices should moderate. Lower corn prices would be good news for livestock feeders and ethanol plants because their profit margins would be greater than either expected.

Publication Name
Iowa Ag Review
Bruce Babcock
Center for Agricultural and Rural Development
Page Numbers
Publication Date
May 01, 2007
Publication Type
Farm Bill

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