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Where will the Corn Come From?

Michael Duffy and, David Correll (November, 2006)

Summary

The recent boom in ethanol production and the planned expansion could significantly shift the demand for corn. One of the major questions is how high the market price for corn will have to rise to pull enough acres out of other crops and into corn to satisfy this new demand. Many factors go into a farmer’s decision regarding what crop to grow or which rotation to follow. One of the primary considerations is the relative profitability. A study was undertaken to examine the relative profitability of alternative rotations for Iowa farmers. This article presents a broad overview of the initial phases of this work.