Two reports out of
A report in the fall edition of the Iowa Ag Review, by Bruce Babcock and David Hennessy, points out that although ethanol demands are expected to spur higher corn acreage next spring, farmers will also be taking soy prices into consideration.
In order for farmers to change their corn-soybean rotations, the report says that corn prices would need to climb to at least $3.40 a bushel if soybeans were $6 a bushel, and if soybeans were at $7, corn prices would have to approach $3.80 a bushel to convince farmers to switch to corn.
The hypothesis takes into effect the decline of corn yields when corn is planted in the same field two years in a row. Due to lower yields and higher fertilizer requirements, among other issues, farmers would need a significant advantage in corn prices over soybean prices in order to make the switch, the report predicts.
Another study, from
This projection has ethanol reaching 315 billion gallons, or 20% of yearly