Fuel Ethanol and Agriculture: An Economic Assessment

Earle E. Gavett, Gerald E. Grinnell and Nancy L. Smith

No 308014, Agricultural Economic Reports from United States Department of Agriculture, Economic Research Service

Abstract: Increased fuel ethanol production from renewable resources like grain through 1995 would raise net farm income benefiting mainly corn and livestock producers. Production of additional byproduct feeds would depress prices of soybeans. Large ethanol subsidies, which are required to sustain the industry, would offset any savings in agricultural commodity programs. Increased ethanol production would also raise consumer expenditures for food. Any benefits of higher income to farmers would be more than offset by increased Government costs and consumer food expenditures. Direct cash payments to corn growers would be more economical than attempting to boost farm income through ethanol subsidies.

Keywords: Agricultural and Food Policy; Crop Production/Industries; International Relations/Trade; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 61
Date: 1986-08
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerser:308014

DOI: 10.22004/ag.econ.308014

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