Study shows ethanol impact on retail ag service sales
North Dakota Farmers Union
August 14, 2014
BY North Dakota Farmers Union
Ethanol production in North Dakota generates significant income for retail agricultural service and supply dealers, roughly $700 million a year, according to a study recently released by the Center for Agricultural Policy and Trade Studies at North Dakota State University.
The study, commissioned by North Dakota Farmers Union (NDFU), directly links 10 percent of all agricultural retail sales to ethanol production.
“Growing corn for ethanol production is not only an important value-added market for farmers, it is a lucrative product for fuel suppliers to retail,” said NDFU President Mark Watne. “Thirteen cents of every sales dollar last year was directly related to ethanol production.”
Advertisement
The study outlined four immediate impacts of ethanol production: increased commodity prices, increased net farm income, increased agricultural inputs, and increased land prices.
According to the study, ethanol production in the U.S. was about 1.6 billion gallons in 2000. A decade later, America produced 12.7 billion gallons of ethanol, consuming nearly 37 percent of the U.S. corn crop. That increased demand raised corn prices from $2 per bushel on average in 2005 to almost $7 in 2012.
Advertisement
“Corn sets the price for all other commodities,” noted Watne. “It’s to our advantage to grow, sell and buy this home-grown renewable fuel.”
To view the study in full, go to AG STUDY
Related Stories
The USGC’s office in Beijing in March organized a set of meetings aimed at assessing demand for SAF. USGC Director in China Manuel Sanchez led the team that included USGC Program Manager Ellie Yan and USGC Regional Ethanol Consultant Aaron Goh.
IAG and Microsoft are extending their 2023 co-funded purchase agreement for SAF by five years. The SAF used under the agreement will be produced by Phillips 66’s Humberside refinery and LanzaJet’s facility in the U.S.
Keit Industrial Analytics gives ethanol producers a new, real-time look at production with its advanced process liquid analyzer technology.
North Dakota’s largest ethanol plant finds success through scale, refinement and change.
The U.S. exported 138.75 million gallons of ethanol and 849,645 metric tons of distillers grains in February, according to data released by the USDA on April 3. Exports of both products were down when compared to February 2024.
Upcoming Events
