Indiana's Plan to Expand Biofuels and Double Pork Production

The Indiana State Department of Agriculture (ISDA) is currently in the middle of a stragetic plan. By the year 2025 Indiana would like to dramatically increase its biofuel production, as well as double pork production in the state. These are big, but possible, goals for the future. Or are they?

The topic of expanding Indiana's biofuels to make it one of the leaders, in the United States, and doubling pork production seems to be sending some ripples through the agricultural industry. The conflict, it's simple, biofuels consume mainly grains such as corn and soybeans, and so does swine.

So how is it possible to greatly expand both of these areas, with our limited resources and capabilities, when they both require such large amounts of grain?

The answer is complicated and requres the reading of a 28 page analyzation about this very topic. The ISDA had Informa Economics, Inc. make an economic analysis about expanding ethanol and pork production in the state of Indiana, while factoring our limited land and labor, and any other limiting constraints, to see how feasible this goal is.

The summary is simple, they believe that it can be done. Yes there will be an increase in the consumption of corn, and no we can't expand our acreage, but we are able to increase yeilds in other areas. The analysis points to technological advances that will impact yields and allow us to follow through with this plan.

Purdue University resently held a debate for students in the Collge of Agriculture to participate in, and the topic was bioenery expansion. During the debate one team was given the positive side about expansion and the other team was given the opposition. Both teams did a great job of finding soild evidence to make their points from, which made for a very good debate. One position that the opposition kept stating was that we cannot greatly expand in bioenergy because we simply do not have the land to increase corn production. The positive side had the stand that the document had, we do not have to increase our acreage of corn to increase production, technology will do that.

It is a hard fought battle for the ISDA because ligitimatly both sides can be taken. What we must keep in mind is the welfare of the state, and how it will affect our lives. I think the ISDA has that in their prespective and that the expansion of biofuels and doubling of pork production will bring more to the state than we realize.

Indy Racing League To Import Ethanol

The Indianpolis Star published a small blurb article about the Indy Racing League (IRL as it is known to the racing world) using Ethanol in their cars in 2007. They site the famous Indiana quote, "There's more than corn in Indian" and explain that sadly there may be corn, but there is not enough ethanol to power the leagues cars.

Indiana currently has only one ethanol production plant in the state, New Energy, which is located in South Bend; and this plant would not produce enough ethanol to fill the large order for the IRL cars as well as fill thier current supply. Because of this current void the IRL has turned to another ethanol plant located in Wyoming.

What, you say, is the reason to be excited about this? Well I'll tell you. Indiana currently has a strategic plan for the state, which has a planned completion in the year 2025, that includes the completion of six new ethanol producing plants that combine to around 400 million gallons of ethanol annually.

If the IRL is planning on leaving the state to find ethanol to power their cars, I hope that they do not sign a long contract, because they will be coming home soon. I am very excited about the future of bioenergy in the state of Indiana and how it will make us a very self-sufficient state, and that we will be able to provide for other states and events (such as the IRL).

"Live Green, Go Yellow"

For more information about Indiana's Agriculture Strategic Plan please visit:
http://www.in.gov/isda/

"Popping" corn prices

After a steady decline in crop prices, the value of corn is at its highest after a 10 year slump. According to Bloomberg online December corn prices rose to its high of $3.5675 per bushel last Thursday.

This jump came after the U.S. Department of Agriculture speculated that corn harvests for this fall will only reach 10.8 billion bushels instead of the 10.9 billion bushels forcast that was released last month. Another factor in the 83 percent increase in corn prices during the past year is due to rising ethanol demand and rising meat production.

As of 2:30 p.m. on November 8, 2006 the December corn prices have once again risen after a short drop to $3.58. According to a document written by Illinois Extension Economist Darrel Good, this time last year the December corn was selling for $1.94 per bushel, just $.03 above the December 2004 corn price.

These record prices come as a big sigh of relief for Indiana corn farmers who are, coinsidentally, having record yeilds this fall. Normally it is one or the other, high prices and low yields, or low prices and high yields. Farmers who are playing thier cards right will lock in contracts for December corn and reap the rewards of a gratifying year.

Cheers to the economy for rising corn prices, to God for good weather and to the farmer for a 2006 year well done.

First Blog

Today is November 8, 2006.