Corn production for 2011-12 is forecast at 146.7 bushels per acre, the lowest since 2003-04, according to this month’s United States Department of Agriculture (USDA) World Agriculture Supply and Demand Estimate (WASDE) report.
In the most recent report, feed and residual use is lowered 100 million bushels with the smaller crop and further reductions in the outlook for broiler production. Projected U.S. ending stocks are lowered 23 million bushels. The season-average farm price is unchanged at $6.20 to $7.20 per bushel.
Approximately 40 percent of the U.S. corn crop is now devoted to ethanol production. The increase in corn-ethanol production puts pressure on the livestock and poultry industries that traditionally have been major users of corn as feed.
Corn prices have roughly tripled since the government in 2006 mandated ethanol be blended into gasoline and the Consumer Price Index for meat and poultry has risen steadily with it.
“These new numbers highlight the urgent need for the U.S. to implement a more balanced energy policy that and doesn’t pit food, feed and fuel needs against each other,” said AMI President J. Patrick Boyle.
He urged Americans to sign a petition supporting a balanced energy policy at http://www.cornforfoodnotfuel.com/.
To view this month’s WASDE report, go to http://www.usda.gov/oce/commodity/wasde/latest.pdf.