Ethanol demand will require more corn acres.

* Ethanol demand will require more corn acres--Using current yield figures, farmers must grow up to 90 million acres of corn acres by 2010 an increase of 10 million more than in 2006--to keep up with the demand for fuel ethanol, according to USDA chief economist Keith Collins. This amount will be needed to fill projected ethanol demand and maintain existing levels of exports and livestock-feed usage, he said. He warned that the growth in ethanol production could have several ramifications, including pushing corn prices to record levels in coming years, reducing government subsidies and potentially raising food prices. Such an expansion of corn acreage could reduce soybean supplies and lead to planting up to 7 million acres now set aside for conservation. Among livestock producers concerned about cost and availability of animal feed, hog and poultry producers would be most directly affected by increased corn prices, since a byproduct of ethanol production, known as distiller's grains, can substitute for corn in cattle feed. Collins said increases in corn yields could help meet future demand for ethanol. (Des Moines Register/Informa Economics)