Implications of Growing Biofuel Demands on Northeast Livestock Feed Costs (original) (raw)

Implications of Growing Biofuels Demands on Northeast Livestock Feed Costs

2007

The relationship between complete-feed prices and ingredient prices are estimated to analyze the effect of higher commodity prices on feed costs, with particular attention to the substitutability of corn distillers dried grains with solubles (DDGS). Using an historical positive price correlation between corn and DDGS, each 1/tonincreaseinthepriceofcornincreasesfeedcostsbetween1/ton increase in the price of corn increases feed costs between 1/tonincreaseinthepriceofcornincreasesfeedcostsbetween0.45 and $0.59

The Effect of Energy Price Increases on the U.S. Livestock Sector

Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 2008

SummaryThis study is unique and crucial to the current time period because of the recent high energy price escalation. The uniqueness of this study pertains to the void in energy impact research of the agricultural sector, more specifically to livestock. The U.S. Department of Energy has models estimating economy‐wide impacts, but not the specific impacts on agriculture. The Iowa State study concentrated on the grain sector.The results presented here indicate that energy price increases will have substantial effects on livestock prices and production. Energy price increases will also result in differential impacts on livestock commodities (with poultry and eggs having the largest price and production effects). Furthermore, the multi‐period framework enables the livestock model to capture lagged production responses. Noticeable is the higher impacts occurring in the third and fourth years.In the future, higher energy costs may induce changes in U.S. production, processing and distrib...

The Impact of Biofuels Policy and Drought on the U.S. Grain and Livestock Markets

Journal of Agricultural and Applied Economics, 2015

This article examines the impact of the 2012 drought and the biofuels mandate on the U.S. grain and livestock markets and estimates the mandate waiver required to offset the impact on the corn price. The framework used is a stochastic equilibrium displacement model that integrates the beef, pork, and poultry markets with the corn, distillers’ grain, soybean, soymeal, and ethanol markets. The corn and beef markets are found to be the most vulnerable. A mandate waiver of approximately 23% is required to fully negate the impact of the drought on corn prices. The waiver is equivalent to a 13.7% reduction in ethanol consumption.