Agri-marketers and biofuels.

Is the biofuel industry (ethanol, biodiesel, etc.) the real and sustainable boost the ag industry needs?

Some agribusinesses are seeing immediate benefit. Companies like ADM, Cargill and Bunge are knee-deep in producing the fuel alternatives or are building plants to do so.

Seed companies are developing ethanol-friendly hybrids. Grain bin companies are reporting record sales. Forecasts are for corn acreage to increase to their highest level in 50 years to meet the demand. To everyone's benefit, grain prices have risen, despite the prospects of harvesting the second largest crop ever.

And the future looks bright. When cellulositic (fiber-based) sources start being utilized as feedstocks, millions of acres will open up, providing new markets for fertilizer, harvesting equipment, seed varieties, and other tools as they come under careful cultivation.

But agriculture is a large and complex industry. Just as some sectors benefit, others come under pressure. DDGs (a by-product of ethanol) are replacing feed as a protein source. No livestock feeder wants higher grain prices.

Regardless of how your organization is affected, the biofuels industry is forcing change in the ag industry which all must be aware of and be prepared.

Lynn Henderson

Publisher