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Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
The Kansas City Federal Reserve held a Ag Sympoisum on July 16, 2012. The presentations are available on their website, but I thought I would recap some of the interesting things I found in reviewing the presentations.
William Hudson of the ProExporter Network had a presentation entitled "What Lies Beyond the Horizon for Farm Income? There is a lot of detail in his report, but here are a few things I found interesting:
It seems looking at these numbers, that although ethanol production has greatly increased, corn production has kept up with the demand without taking too much other crop production acres away. Even if you totally remove ethanol out of the equation, the net amount of corn being used for ethanol, net of DDG for feed is most likely the equivalent of about 20 million acres (which is about equal to the net increase in corn acres) and since total world acres planted to corn is about 431 million acres, this represents about 5% of the overall land planted to corn (granted our yields are higher, but it would still only be a percent or two).
Based on this, it appears you can completely eliminate ethanol demand for corn acres and the underlying price of corn should not change that much. I am not economist, but this is what I find looking at his numbers.
I will do a few more posts on this and other information from the symposium.
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