CARD Director Testifies before Senate Ag Committee Hearing on Food, Feed and Fuel Production
Expectations for greater biofuel plant capacity and the federal Renewable Fuels Standard have created a "can't lose" demand proposition for U.S. corn and soybean farmers. This is according to the testimony of Bruce A. Babcock at a field hearing of the Senate Agriculture Committee on food, feed and fuel production at the University of Nebraska, Omaha, on August 18.
Babcock, a professor of economics and director of the Center for Agricultural and Rural Development at Iowa State University, told the committee that ethanol mandates have created a demand of between 25 and 30 percent of the U.S. corn crop for fuel production.
Babcock said he expects a bright outlook for corn and soybean prices over the next five years, facilitated by tax credits and energy mandates, and as long as crude oil prices remain above $100 per barrel. There is little doubt, said Babcock, that biofuels from corn and vegetable oil will meet levels mandated by Congress.
A copy of Babcock's full statement at the August 18 hearing is available at www.card.iastate.edu/products/presentations/files/babcock.senateag.8-18-08.testimony2.pdf.
(Released August 2008)