This article addresses development of the Illinois ethanol industry through the period 2007-2022, responding to the ethanol production mandates of the Renewable Fuel Standard by the U.S. Environmental Protection Agency. The planning for corn-based and cellulosic ethanol production requires integrated decisions on transportation, plant location, and capacity.
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Spatial Marketing Patterns for Corn Under the Condition of Increasing Ethanol Production in the U.S.
Events external to agriculture have set in motion the conditions for structural change in the marketing of corn in the U.S. These included a rapid increase in the price of crude oil from $40 per barrel to over $100 caused by hurricanes, geopolitical events, an increased global demand for energy from countries like China and India, and in December 2007, the U.S. raising the renewable fuel standards. The results of this research show that there could be significant changes in the historical utilization and marketing of corn in the U.S.
This is an overview of transportation issues facing a rapidly expanding U.S. ethanol industry in the context of the U.S. corn market—currently the main source of ethanol production in the United States. The aim of the report is to present a frame of reference as the ethanol industry continues to grow and additional transportation benchmarks and indicators develop by providing analysis of transportation requirements for corn-based ethanol and its impact on grain transportation.