CIFT News


CIFT Kicks Off the Northwest Ohio Ag-Business Breakfast Forum with Facts on Corn - Food versus Fuel


On March 19, 2009, CIFT hosted the first Northwest Ohio Agribusiness Breakfast Forum in conjunction with the Agricultural Incubator Foundation in Bowling Green, Ohio. The informal networking breakfasts are structured to provide information on current issues, trends and programs available to agricultural businesses in order to help build business capacity.

The first forum featured guest speaker, Mark Schwiebert, a farmer from Henry County and National Corn Growers Association Corn Board member, addressed some of the confusing information often relayed through the media regarding commodity prices, food costs, and fuel production in relation to corn ethanol. Accelerated growth in corn usage for ethanol production has led critics to question the industry’s ability to satisfy demand for both renewable fuels and traditional uses like livestock feed, food processing and exports. Skeptics suggest the corn industry will have difficulty in meeting the demands of feed, food, and export markets, as well as, supply the ethanol industry.

Schwiebert stated that the topic should not be Food versus Fuel, but rather Food AND Fuel. He noted that US corn growers are growing enough to meet all current and future needs and that farmers are leaders in environmental and economic sustainability. Grower inputs (fertilizer, pesticides, herbicides) have lessened, and outputs (bushels of corn per acre) continue to increase due to increased sustainability and efficient management practices among our farmers.

In his discussion, Schweibert sited the USDA’s comment on the rising cost of food prices by stating that "higher corn prices increase animal feed and ingredient costs for farmers and food manufacturers, but pass through to retail prices at a rate less than 10 percent of the corn price change." Additionally, non-farm costs are a larger proportion of the retail food dollar - up from 59% in 1959 to 80% today. This jump is primarily due to rising labor and energy costs. And when commodity prices began to drop in the third quarter of 2008, the Wall Street Journal reported that corn and wheat prices were down 15.6% and 37.3% year-to-date, respectively, but the Consumer Price Index continued on an upward trend (October 17, 2008).

Schwiebert cited facts and figures on how US farmers are increasing their sustainability and decreasing their inputs by more efficient monitoring and management practices. Corn’s impacts from 1987-2007 show a 37% decrease for the amount of land, a 37% decrease in the energy used, and 30% decrease in emissions to produce one bushel of corn.

Schwiebert provided an update on the Ohio ethanol industry, noting that Ohio went from three to seven ethanol production plants in 2008. Four of those plants are operational - three plants operated by Poet, LLC and Andersons Marathon Ethanol, LLC and one plant operated by Altra Coshocton Biofuels, LLC in Coshocton, Ohio. The Coshocton plant is buying corn, but stopped production due to corn and ethanol market volatility. Production will resume when the market stabilizes. Due to lackluster investor interest, no new plants are planned. However, those that are operational are looking at cellulosic ethanol enhancements to make their plants more economically viable.





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