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Large-scale alcohol production from corn, grain sorghum, and crop residues

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  • Turhollow, Anthony F., Jr.

Abstract

The potential impacts that large-scale alcohol production from corn, grain sorghum, and crop residues may have on U.S. agriculture in the year 2000 are investigated. A one land group interregional linear programming model is used. The objective function is to minimize the cost of production in the agricultural sector, given specified crop demands and constrained resources;The impacts that levels of alcohol production, ranging from zero to 12 billion gallons, have at two projected levels of crop demands, two grain-to-alcohol conversion and two milling methods, wet and dry, rates are considered. At the lower level of crop demands, 1980 crop exports are used and at the higher level of demands, one-half times 1980 crop exports are used. A rate of conversion which reflects current technology, 2.6 gallons of alcohol per bushel of grain, and one which reflects a maximum potential rate of conversion, 3.0 gallons per bushel of grain, are incorporated into the model;The impacts that large-scale fuel alcohol production has on U.S. agriculture are small. The major impacts that occur are the substitution of milling by-products, DDG, gluten feed, and gluten meal, for soybean meal in livestock feed rations. Production of 12 billion gallons of alcohol is estimated to be equivalent to an 18 percent increase in crop exports. Improving the grain-to-alcohol conversion rate from 2.6 to 3.0 gallons per bushels reduces the overall cost of agricultural production by 989 billion when 12 billion gallons of alcohol are produced.

Suggested Citation

  • Turhollow, Anthony F., Jr., 1982. "Large-scale alcohol production from corn, grain sorghum, and crop residues," ISU General Staff Papers 198201010800009390, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:198201010800009390
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    References listed on IDEAS

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    1. Donald Hertzmark & Silvio Flaim & Daryll Ray & Greg Parvin, 1980. "Economic Feasibility of Agricultural Alcohol Production within A Biomass System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(5), pages 965-971.
    2. Meekhof, Ronald & Gill, Mohinder & Tyner, Wallace, 1980. "Gasohol: Prospects and Implications," Agricultural Economic Reports 307886, United States Department of Agriculture, Economic Research Service.
    3. Ronald L. Meekhof & Wallace E. Tyner & Forrest D. Holland, 1980. "U.S. Agricultural Policy and Gasohol: A Policy Simulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 408-415.
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    Cited by:

    1. Schraufnagel, Stanley Albert, 1983. "Livestock policy alternatives: national and interregional analysis," ISU General Staff Papers 198301010800008647, Iowa State University, Department of Economics.

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