GoodFuels

Corn Bounces Back

The USDA August crop production forecast is a demonstration of just how resilient American farmers can be. Despite June’s severe flooding in the Midwest, U.S. farmers are still on pace to produce the second largest corn crop in history at 12.3 billion bushels.

Much of the credit must go to Mother Nature for having pity on the farmers she had just belted with flooded fields, blessing them with almost picture perfect growing conditions for the past month.

That pushed the yield forecast up to 155 bushels per acre for corn, which would be the second highest on record behind 2004.

“This is great news not just for corn growers, but for everyone,” said National Corn Growers Association President Ron Litterer. “We’re committed to meeting all needs and this estimate indicates we are growing the corn this year to do so – and provide a solid carry-out into 2009.”

Indeed, today’s World Agriculture Supply and Demand Estimate from USDA increases the use of corn expected for both feed and ethanol. Feed and residual use is raised 100 million bushels with the larger crop and lower expected prices. Ethanol use is raised 150 million bushels as increased supplies and lower prices are expected to improve plant operating margins and capacity utilization rates. Exports are unchanged while ending stocks for U.S. corn are projected at 1.1 billion bushels, up 301 million bushels from last month.

Renewable Fuels Association president Bob Dinneen says this goes to show that America’s farmers can produce both food and fuel. “Their historic response should go a long way in silencing those Chicken Littles who sought to capitalize on the devastation of this summer’s flooding to undermine and abandon America’s movement toward cutting our dependence on foreign oil,” said Dinneen.

I’m not sure it will silence those “Chicken Littles” but it sure makes me proud of our farmers.