Fields of Gold: Changes in the US Corn Industry

Changes in US Corn Industry Corn was once a straightforward crop. However, there have been big changes in recent years. Overall use of corn has increased significantly as a result of renewable energy legislation. There have also been dramatic changes in the corn varieties that are planted as the country's crop shifts to genetically engi- neered strains. The data below looks closely at these changes. Corn usage 12 10 Alcohol for fuel use 8 Food, seed, and industrial uses Livestock feed and residual use 1980 2013 Price received by corn producers Corn price in- creases have been a result of $8 its use as a fuel source. However, the increased 5 4 cost of corn for feeding livestock has resulted in ranchers thinning their herds. 2000/01 2012/13 1980/81 Marketing year Genetic engineering 100%- Non-GE corn In 2013, genetically engineered corn accounted for 90% of the planted crop showing a steep in- crease from just 25% in 2000. The majority of the current crop is known as stacked gene, meaning that it is both insect resistant and herbicide tolerant. 80%- Stacked gene varieties 8 60%- ㅎ 40 % - 20%- Herbicide tolerant Insect resistant 0%- I 2000 2013 Corn yield per acre 200 150 Genetic engi- neering is touted to increase crop yields. However, yield data does not mirror the im- 100 50 plementation rate GE corn. 1980/81 Marketing year 2000/01 2013/14 US planted acres 100 The increase in acreage used for corn is a result of its increasing profitability. As ethanol use con- tinues to expand, farmers have shifted crop plant- ings from soy- beans to corn. 80 60 40 20 1993/94 2000/01 1980/81 Marketing year 2013/14 Ethanol supply 15,000 Imports In 2005, federal policy was implemented to require standards in re- newable fuel use. This led to annual increases Stocks from previous year 12,000 9,000 in the percent volume of renewable fuel that is blended into gaso- 6,000 Production line. 3,000 1993 2012 From field to gas tank Ethanol and gasoline are not equal power sources. 1 bushel corn (56 pounds) Energy equiva- lent of 1.8 gal- lons of gasoline (geg) 2.7 gallons of ethanol Ethanol and gasoline According to the US Energy Information Administration, "In 2012, about 134 bil- lion gallons of gasoline were consumed in the United States, which contained about 13 billion gallons of ethanol, accounting for 10% of the volume of gasoline consumed." Although ethanol is still is more a more costly source of energy than gasoline, the difference is beginning to narrow. $6 $5 Ethanol in gas0- line equivalent gallons (geg) $4 $3 Gasoline (gal) $2 $1 Jan 1982 Jul 2013 © FlapjackMedia.com Sources: USDA, National Agricul- ture Statistics Service, Nebraska Energy Office, Reuters, US Depart- ment of Energy, US Energy Infor- mation Administration Acres (Million) Bushels Billion bushels Cost per gallon Gallons (million) Percent of all US corn plantings