In new supply and demand estimates released today, the USDA shows that the average price for a bushel of corn in 2008 is around $4 - lower than the average price in 2007. The National Corn Growers Associates points out that this proves that higher ethanol demand can be accommodated with little impact on corn and food prices.
NCGA's President, Bob Dickey, is a farmer from Laurel, Nebraska. In a press statement today he said, "Growers in 2008 overcame numerous obstacles to bring in a good crop and meet all needs for corn. One of our significant challenges has been dealing with higher costs for land, fuel, and fertilizer and trying to break even. The high prices for corn futures were unrelated to ethanol demand and did not always mean more money in the pockets of growers."
Posted by KB, 12/11/08