The Response of Corn Acreage to Ethanol Plant Siting

Yehushua Shay Fatal · Walter N. Thurman

21 citations0/0 files storedJournal of Agricultural and Applied Economics

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Agricultural economics and policies Biofuel production and bioconversion Bioenergy crop production and management

Abstract

U.S. ethanol production capacity increased more than threefold between 2002 and 2008. We study the effect of this growth on corn acreage. Connecting annual changes in county-level corn acreage to changes in ethanol plant capacities, we find a positive effect on planted corn. The building of a typical plant is estimated to increase corn in the county by over 500 acres and to increase acreage in surrounding counties up to almost 300 miles away. All ethanol plants are estimated to increase corn production by less than their annual requirements.

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1990Some robust approaches to testing and estimation in spatial econometrics 2005Measuring the Impact of Ethanol Plants on Local Grain Prices

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2020Market Structure and the Local Effects of Ethanol Expansion on Land Allocation: A Spatially Explicit Analysis

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