New fuel standard's impact.

by the AgriMarketing Editors

The Context Network, Des Moines, IA, and The Windmill Group, Drake, ND, will soon release a new report that examines the feasibility and the impact on the agricultural industry if the new 35 billion gallon alternative fuel standard, which President Bush called for in his 2007 State of the Union address, becomes law.

The more than 80 page report is chockfull of useful narrative, statistics and charts and provides a blue print for the future development of the biofuels and agricultural industries. Here are a few of the report's highlights:

* 20 to 21 new ethanol plants would have to come online each year over the next ten years.

* Manufacturing technologies must improve, including corn hybrids, enzymes/yeasts, decreases in the amount of water and energy required.

* Crop producers must become convinced that permanently altering their crop rotations makes agronomic and economic sense.

* Automakers would have to redesign, recertify for emissions compliance and begin manufacturing more flex-fuel vehicles.

* Total corn acres would have to increase to 95 million acres and yields increase an average of 1.85% per year.

* Soybean production would have to grow 6% outside of the U.S.

* At least two ethanol pipelines must be built to the West and East coasts.

* Crop producers would switch to planting soybeans every third year.

* Consumers must accept higher ethanol blends.

* Oil prices remain above $50/barrel and corn prices do not rise above $4.00/bushel.

The report also discusses the changes in where crops are grown, as well as its impact on land prices, agronomic practices, livestock producers and agribusinesses, including crop input retailers/distributors, seed producers, fertilizer companies, crop protection manufacturers, equipment suppliers, and the grain handling/storage industry.

To receive more information about the report or to obtain a copy of it, contact Mike Borel, mike.borel@ contextnet.com, or go to www. contextnet.com or Don Senechal, [e-mail].