Presentation on theme: "AN ECONOMETRIC ANALYSIS OF THE IMPACT OF THE EXPANSION IN THE U.S. PRODUCTION OF ETHANOL FROM CORN AND BIODIESEL FROM SOYBEANS ON MAJOR AGRICULTURAL VARIABLES,"— Presentation transcript:
AN ECONOMETRIC ANALYSIS OF THE IMPACT OF THE EXPANSION IN THE U.S. PRODUCTION OF ETHANOL FROM CORN AND BIODIESEL FROM SOYBEANS ON MAJOR AGRICULTURAL VARIABLES, 2005 TO 2015 Jake Ferris Professor Emeritus Department of Agricultural Economics Michigan State University
Federal and state energy and environmental policies to encourage renewable fuels are designed to: Improve air and water quality Reduce U.S. dependence on foreign oil Promote economic growth in rural areas Shore up farm prices and incomes Save expenditures on farm programs
Conclusions U.S. agriculture can accommodate expansion in production of renewable fuels. Higher prices in the feed grain and soybean sectors will have minimal long run effects on the livestock industries and retail food prices. Renewable fuels programs will help ensure an economically viable agriculture and reduce federal farm program costs.