News

Ethanol Use Continues to Grow While Prices Reach Decade Lows


In the United States, production of ethanol is largely tied to federally mandated renewable fuel standards contained in the Energy Independence and Security Act of 2007 and the prior Energy Policy Act of 2005.

The former calls for 36 billion gallons of renewable fuels in production by 2022, but requires that an increasing share – 21 billion gallons – of the mandate be met with advanced biofuels, which are biofuels produced from feedstocks other than corn starch (and with 50 percent lower-lifecycle greenhouse gas emissions than petroleum fuels).

Corn based ethanol production has begun leveling off since 2010 as production nears the cap for non-advanced biofuels.

As production has leveled off, the average annual price of ethanol has declined.

The average ethanol price in 2016 was $1.55 per gallon, the lowest price since 2003.

While the price of ethanol is also impacted by unrelated movements in the corn market, slowing growth of ethanol production has impacted the prices of both commodities.

The data in this chart is drawn from the ERS U.S. Bioenergy Statistics data product updated in December 2016.

Source: USDA

ProAg Quick Links

Agent Toolbox Grower Toolbox Careers

ProAg News

USDA Undersecretary Addresses Range of Ag Issues

Bill Northey, USDA undersecretary for farm production and conservation, said that getting help to dairy farmers in the form of having the program authorized in the 2018 Farm Bill rolled out as quickly as possible is the top priority for the department for going forward....

9 Ag Tech Startups Introduced

The Iowa AgriTech Accelerator hosted its second annual AgTech Day in late March in West Des Moines. From across the country, nine early-stage ag tech startups gathered to showcase their innovations to the Accelerator’s community of mentors and supporters....

What To Do With Crop Residue, Grain, Hay Affected by Flooding

In the aftermath of extreme flooding events in Nebraska this spring, landowners are faced with not only sand, silt and debris deposited on their land, but also with large amounts of corn residue from upstream — piled 3 feet deep on some fields....
Get ProAg updates via email
Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now

×