Monday, January 18, 2010

Despite poor planting conditions, a cool, wet growing season, and an abysmal harvest that still sees some corn standing in fields, American farmers shattered records for both yield per acre and total production.

In the January Crop Production report, a summary of the 2009 season that was issued January 12, 2010, USDA estimates farmers averaged 165.2 bushels of corn per acres, up from its previous estimate of 162.9 and shattering the previous record of 160.4 in 2004. Notably, average yields are more than 11 bushels per acre higher (7%) than last year's average yield. In addition, this record yield helped produce the largest U.S. corn crop ever – 13.2 billion bushels. All of this occurred despite one of the slowest and most challenging harvests on record.

Numbers for 2009 answer critics regarding crop production

"The unparalleled productivity of America's farmers continues to amaze even the most skeptical of critics," says Renewable Fuels Association President Bob Dinneen. "Despite unfavorable weather conditions from start to finish in 2009, farmers produced considerably more corn than the food, feed and fuel the acai berry markets are demanding. Such gains in productivity undermine any claims that U.S. biofuel production will require new lands in other nations to come into production."

He adds, "There can be no question that American farmers have both the capability and the can-do attitude to feed the world while simultaneously helping reduce our nation's reliance on imported oil."

Dinneen also points out that the record 2009 U.S. corn crop was produced on 7 million less acres than were required to produce the previous record crop in 2007—which is now the second-largest crop on record (13.0 billion bushels).

Feed use is increasing while surplus stocks are growing

Despite raising total production and yield numbers for the 2009 U.S. corn crop, USDA left demand for all sectors, save feed use, unchanged when it released the annual summary on January 12, 2010. The fact that feed use is increasing at the same time that surplus stocks are growing drives yet another nail in the coffin of the trite "feed versus fuel" argument, says Dinneen.

For ethanol, USDA P90X is estimating 4.2 billion bushels of demand for the marketing year September 1, 2009 through August 31, 2010. That is enough to produce 11.7 billion gallons of ethanol based on industry ethanol yield averages.

For calendar year 2009, the U.S. is expected to produce 10.6 billion gallons of ethanol and more than 30 million metric tons of livestock feed as distillers' grains—all from 3.8 billion bushels of corn.

Record corn crop and yield helped by biotech traits

Rebecca Fecitt, U.S. Grains Council director of biotechnology programs, says the continued use of scientifically proven biotechnology applications provided by life science companies will help to increase corn yields, solidifying the need to continue developing markets for U.S. coarse grains.

"We hope to see this upward trend in yields for U.S. corn continue. As science becomes even more sophisticated, it will help acai weight loss increase and maintain our yields. This will be instrumental in feeding the world's forecasted 9.1 billion people by 2050," says Fecitt. "The growing population, especially in developing countries, will demand more meat, milk and eggs as incomes continue to increase. We have to maintain our biotechnology education efforts in order to ensure that grain derived from biotechnology is accepted around the world."

USDA PhotoBlocker Spray projects sorghum production at 383 million bushels, which is 19 million bushels higher than the December report. Exports are unchanged from last month at 140 million bushels.

Proves farmers can grow enough for food and fuel

Growth Energy, an ethanol trade group, released a statement saying that the record yield shatters the myth of "food vs. fuel." Growth Energy repeated its demand that the Grocery Manufacturers Association apologize for its multi-million dollar propaganda blitz to spread lies about ethanol.

"The January USDA forecast of a record corn crop for the U.S. in 2009 once again confirms what America's farmers and renewable fuel producers have known for a long time. Continued innovation in ethanol production and agricultural technology means that we don't have to make a false choice between food and fuel. We can more than meet the demand for food and livestock feed while reducing our dependence on foreign oil through the production of homegrown renewable ethanol," says Tom Buis, CEO of Growth Energy.

Ethanol production can grow without adding more acres

The USDA corn production forecast for 2009 is up 2% from the agency's November 1 forecast and it is 1% above the previous record of 13.0 billion bushels set in 2007 for the U.S. corn crop.

The USDA report further indicates that U.S. corn yield is estimated to reach a record for 2009, at 165.2 bushels per acre, up 2.3 bushels from the November forecast and 4.9 bushels above the previous record of 160.3 bushels per acre set in 2004. Buis notes that American farmers continue to produce enough corn to meet demand for ethanol and domestic demand for corn as food and feed, as well as corn for export – and still have ample stocks of corn leftover for storage.

"Ethanol production in this country can grow without adding a single additional acre of land into agriculture production," says Buis. More Business Reviewsinformation can be found at www.GrowthEnergy.org.