1. C. Robert Taylor Ronald D. Lacewell Emily Seawright

2. Continuation of $1.00/gallon tax credit for biodiesel and $0.45/gallon tax credit for corn ethanol assumed.

4. Energy Input and Output Assumptions Energy Inventory Fossil Energy Use (Btu/gallon of Biofuel) Biodiesel from Soybean Oil Ethanol from Corn Agriculture4,54414,923 Transport7284,727 Crushing (soybeans)3,930 Conversion to Biofuel15,46739,171 Biofuel Transport1,0271,588 Total Energy Inputs Adjusted for Coproducts25,69660,409 Biofuel Total Energy Output117,09376,000 Net Energy Value91,39715,991 Fossil Energy Ratio4.561.26

5. NET  100, 200, and 300 Trillion NET Btu of biofuel produced  Corn Ethanol only  Soy-Based Biodiesel only

6. Biofuel Production (million gallons) Corn Ethanol Only Soybean Biodiesel Only Gross Production12,8182,188 Net Production2,6971,708

7. CHANGE in Economic Surplus (million dollars annually) Corn Ethanol Alone Soybean Biodiesel Alone Food Consumers' Well Being-$14,265-$11,714 Net Farm Income$11,234$12,240 Cost of Tax Credits$6,542$2,188 Net Economic Impact-$9,573-$1,662

8. Cost per Gallon (gross) Corn Ethanol Alone Soybean Biodiesel Alone Production Cost Allowing for Co-Product Credits $0.45$0.30 Feedstock Cost$1.32$3.43 Economic Surplus Cost$0.75$0.76 Total Costs$2.52$4.49

9. Aggregate Economic Cost ($/gallon wholesale) Corn Ethanol Only Soybean Biodiesel Only per Gross Gallon$2.52$4.49 per Net Gallon$8.22$5.46

11.  Environmental impacts  Carbon sequestration  Foreign exchange rates and trade  Trade dependence on foreign oil for dependence on foreign sources of phosphorus fertilizer

12. Questions?