Most in county to see benefits of ethanol
Some may have to make adjustments
By Kevin Schnepp Staff writer

Most people seem to comprehend the pros and cons of supply and demand. But when it comes to differences in the business of grain and livestock production, Carroll County farmers may have a better understanding than most.

As local farmers witnessed the emergence of corn-based ethanol as a fuel option in the past year, they simultaneously saw the price of a bushel of corn almost double its value.

Jim Cripe of The Andersons Inc. said the simple concept of supply and demand is paying off big for grain producers.

"A new market requiring a lot of corn has come available," Cripe said. "Naturally the price will rise dramatically."

Cripe said crop farmers are experiencing corn prices around $3.80 per bushel, almost $1.80 higher than one year ago.

"It's great for grain producers and buyers," Cripe stated. "The country will need to grow more corn, so it will cut back on soybean production, in turn driving up the price of beans. With an added market for corn growers, how can we lose?"

Cripe said there would be two billion bushels of new demand for corn nation-wide in the next 12 to 14 months, representing an increase of approximately 18 percent over last year's production.

He said about 18 million bushels of corn are produced annually in Carroll County, about two million bushels higher than Indiana county averages.

Cripe said about 5.4 billion gallons of ethanol were produced in the United States last year. An additional 6.1 billion gallons are planned for production once plants under construction are functional.

The Andersons Inc. has vested interest in two of those plants, located in Rensselaer and Clymers.

"With this much more demand, crop prices will continue to rise," Cripe stated. "That means more income for farmers as well as the county."

Excel Co-op General Manager George Green explained it would take virtually all the corn from Carroll and five surrounding counties to supply the three nearest ethanol plants.

According to Green, ethanol's grain demands would make a substantial impact, but not necessarily a positive one.

"This spells opportunity for most," Green commented. "But it will be a challenge for hog growers."

Carroll County Pork Producers President Dave Lambert shared a similar view. He said the days might be numbered for the few r e m a i n i n g farmers who own their own hogs.

"Just 30 years ago there were there were 800 hog farmers in the county," Lambert explained. "Now only 10 own their own hogs out of the 80 hog farms left. The price of corn and bean meal will probably drive those 10 either out-ofbusiness or into a contract."

"Farmers who raise their own hogs and own little or no cropland will suffer," Lambert continued. "Even at current grain prices, they find it difficult to break even."

He said farmers who raise hogs on contract are supplied with the livestock and feed. Thus, costs are considerably lower.

Lambert said he believes the government cares about keeping food prices low, but wonders if much concern is afforded to individual farmers. He said he understood the changing face of business, but it has been difficult to see local hog farmers suffer.

"I'm sure it's a difficult situation to figure out," he said. "But I don't see much being done to stop a problem being caused by a fuel source some consider not to be an answer to the country's desires. Those who don't want to sell out may not have much of a choice."