US grain sector faces high demands

02-04-2007 | |

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.

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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