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Energy Demand

Ghost

Ghost

Life Member
Without going into a lot of statistics and numbers...

I read an article last night that economists are stating that corn ground prices will double in the next three years. (Good bye CRP!)

There were something to the tune of 80 new ethenol plants under construction that will be operational in the next 18 months.

One number I will quote, the economist predicted $9000.00 an acre corn ground by 2010.

Four dollar corn is real right now, I payed my elevator bill last night.
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I also heard the same thing about corn and ground prices.

This is good for the farmers but this is going to have a terrible impact on our wildlife.
 
I talked to a couple of farmers about this and they believe this is being way overblown! They said more corn will be grown and this will nock the price down.
 
That is what I have been hearing Derek. One maybe two years tops until the price gets driven back down. It will be interesting that is for sure.
 
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I talked to a couple of farmers about this and they believe this is being way overblown! They said more corn will be grown and this will nock the price down.

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I guess we will wait and see.....

This is going to be a demand driven market and they have a pretty good handle on the demand of just one of these plants.

Land prices are going to follow corn prices, and corn prices are going to follow gas prices.

The "experts" are predicting 25 percent of the energy needs being supplied by bio-fuels by 2025...
 
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I talked to a couple of farmers about this and they believe this is being way overblown! They said more corn will be grown and this will nock the price down.

[/ QUOTE ]

I guess we will wait and see.....

This is going to be a demand driven market and they have a pretty good handle on the demand of just one of these plants.

Land prices are going to follow corn prices, and corn prices are going to follow gas prices.

The "experts" are predicting 25 percent of the energy needs being supplied by bio-fuels by 2025...

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I sure hope land prices don't go up a lot in the next 5 years! Or i can kiss my 5 year plan to buy my own little piece of property good-bye!
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We are finally getting an E85 pump locally. Only other place I've come across E85 was in Ames. Our 2001 Dodge Caravan is set up for flex fuel.
 
My taxi driver for the trip to the Classic this year was driving a big E85 vehicle.

He really knows how to handle his rig!
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It used to be we looked at feed demand for livestock, weather and exports to predict corn price. Now you need to consider crude oil prices. An ethanol plant is in the black with corn between $4.00 and $4.25 when crude oil is around $60 per barrel. Those that say the corn price will be back in the 2 dollar range must also think we're going back to $30 oil. The ethanol plants that are currently under construction or in operation will use the equivalent of almost 140% of Iowa's 2006 crop. Corn will buy more acres from soybeans, hay, pasture and CRP. Some say the soybean belt will move West to drier areas of Western Iowa, and Eastern Nebraska, Kansas and South Dakota.

Personally I believe that the protein from the immature bean crop is a critical factor in Iowa deer nutrition generally during the rapid antler growth period. My theory is that more corn-on-corn in Iowa may shift the "big buck belt" west with the soybeans.

Now, how's that for a discussion topic?
 
Ghost- I read the same report from the IFB commodities expert. Did a little research myself and while I'm not sure of the prediction they made of $9000 an acre if corn stays at $4 for three years- I'd say it is a safe bet that it is going up.
Just how high will that drive recreational ground? Consider that marginal ground either in CRP or pasture is going to get converted to corn. The more rugged stuff will be pastured and what is left will get sold for hunting. The DNR is going to have less buying power than they already do for land purchases.
 
Do you seriously think that oil companies aren't going to bottom out barrel prices for as long as needed to get market share back?

They aren't exactly just getting by right now...
 
yep- oil companies are getting on board with alternative fuels as well and will make a buck where they can. There is only so much they can control with mideast supply and the idiots killing each other.
 
I think it's going to be more like $900.00/acre by 2010. Over 90% of the corn that goes into ethanol production comes out as cattle feed. If they were able to produce something real like plywood then, ethanol might have a sustainable future. Take away the gov. subs. given to these ethanol plants and you will see an implousion within the industry. Sell...sell..sell.

I am not Jim Kramer from Mad Money or a financial consultant but I did stay at a Holiday Inn last night
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hunt on all4s
 
this is going to make gaining permission to hunting land even more difficult
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all4s,

I hope your exactly right, but I just can't see that happening. Unless they start producing eth. with something that is cheaper than corn and can't be grown in Iowa.
 
I was talking to someone last week that said something about using switchgrass much like corn for energy. I think his son has some ground in a test program for either University of Nebraska or Kansas State University. If this was to take hold would it help or hurt the hunting of game birds and deer.
 
I now that the farmland around here is running around $5800 an acre. Talk about amazing. Sure wish I owned some farmland up here.
 
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I think it's going to be more like $900.00/acre by 2010.

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all4s...show me some of that $900 an acre ground in 2010 and I'll go to the bank for another loan.
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All the hype over ethanol when it is a fact that it doesn't get the fuel economy that regular unleaded gets, it is not safe to use in any pre-1980 vehicles as it causes the plastic and rubber componenents in the fuel system to degrade. It also makes a vehicle have a decrease in performance. I won't run the ethanol in my vehicles or my Harley. It is an oxyengate that is put in fuel to help it burn more completely and to reduce emmissions. There is a "corrossive nature" to ethanol that all current vehicles sold in the United States are designed to be able to handle, according to a recent article about ethanol in the Latest Harley Davidson Motor Companies magazine called the Enthusiast. This months issue has a article strictly on enthanol. Most of these facts on ethanol I already knew and I am quoting these facts out of the magazine.Ethanol has a heating value of 76,000 btu per gallon, about 30% less than the value of gasoline. I won't use it.
 
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