News last update:6 Aug 2012

US grain sector faces high demands

The US. feed grain sector, largest of the major US field crops, faces unprecedented demand conditions. The size and speed of the expanding use of corn by the ethanol industry is raising widespread issues throughout US agriculture, according to the latest Outlook report published by the USDA.

Debate is ongoing over the use of grain for fuel instead of for food or feed and the adequacy of future grain supplies.
Increased productivity (yield) and additional area from land planted to competing crops, land enrolled in conservation programs, or idled land is expected to provide an increased supply of feed grains.

The outlook is for higher feed grain prices, in part, as a result of renewable energy policies and high energy prices, with feed grain prices rising above farm program support levels. During the ongoing farm policy debate, the US feed grain sector faces uncertainty about the future level and type of government support.

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