Bioenergy

Overview

Rising fossil fuel prices and policy changes, including the passage of the Energy Independence and Security Act (EISA) of 2007, have created an environment where research development and investment in renewable energy sources have gained new momentum. Among renewable energy sources, bioenergy derived from plant materials has been one of the most rapidly growing sectors. Although most bioenergy production currently comes from agricultural crops such as grains, oilseeds, and sugar, research is increasingly focused on cellulosic sources of biomass such as wood and perennial grasses, use of which would expand the range of potential feedstocks. In the United States at this time, ethanol (produced mainly from corn) is the largest source of bioenergy used as a fuel additive or substitute for petroleum fuel, while biodiesel (made from vegetable oils and fats) provides a smaller share of bioenergy.

Biofuels currently account for roughly 5 percent of overall transportation fuel use in the United States, and the use of biofuels is scheduled to reach 36 billion gallons by 2022 under the EISA Renewable Fuels Standard. The rapid increase in grain-based ethanol production and the potential use of cellulosic materials as an ethanol feedstock affects agricultural markets, local communities, consumer prices, and environmental quality. ERS information products include current estimates and projections of commodity supply, demand, and retail food prices. Further information and analyses describe conditions of the U.S. agricultural system, land use, rural communities, and the environment, and the impacts that bioenergy development may have on these areas.

Features

Transition to a Bioeconomy: Environmental and Rural Development Impacts. Sponsored by USDA and the Farm Foundation, this workshop in St. Louis, Missouri, October 15-16, 2008, will explore topics such as biofuels and carbon emissions, land use impacts, water quality and quantity issues, and jobs and the bioeconomy.

2008 Farm Bill Side-By-Side (August 2008). A title-by-title summary of key provisions of the 2008 Act in a side-by-side comparison with previous legislation. The side-by-side includes links to related ERS publications and to analyses of previous farm acts. New features include a user's guide, an A-Z list of major provisions, and a search function.

Recommended Readings

Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Commodity Prices (July 2008). This report explores the many factors that have contributed to the runup in food commodity prices over the last 2 years.

Corn Prices Near Record High, But What About Food Costs? (February 2008). This Amber Waves article traces the effect of higher corn prices on U.S. retail food prices by analyzing data on price trends from 1987-2007 and the price responsiveness of corn-dependent food to cost changes. The results indicate ethanol's impact on retail food prices depends on how long the increased demand for corn raises farm corn prices and the extent to which higher corn prices are passed through to retail.

Ethanol Expansion in the United States: How Will the Agricultural Sector Adjust? (May 2007). Corn is currently the primary feedstock for ethanol in the United States. Market impacts of the expansion in ethanol production extend well beyond the corn sector to supply and demand for other crops, such as soybeans and cotton, as well as to U.S. livestock industries. As a consequence of these commodity market impacts, farm income, government payments, and food prices also change. See narrated slideshow for an overview; see related Amber Waves feature U.S. Ethanol Expansion Driving Changes Throughout the Agricultural Sector (September 2007).

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Recommended Data Products

Feed Grains Database. Monthly and quarterly data on corn used for ethanol are available via custom queries. Feed yearbook tables have data on imports/exports of ethyl alcohol and imports/exports of brewers' and distillers' dregs and wastes (the trade categories for ethanol and distillers' dried grains from ethanol plants). Additional country data and earlier data than contained in the yearbook tables can be obtained using custom queries.

Ethanol Co-Products Used For Livestock Feed. A survey by USDA's National Agricultural Statistics Service of beef, dairy, and hog producers in 12 Midwestern States to determine current usage of distillers grains, essential feed characteristics, and concerns keeping producers from using distillers grains. 

Commodity Costs and Returns. Annual farm cost and return estimates for corn, other major field crops, and livestock commodities are available in Excel spreadsheets.  These estimates track the relative costs and returns for corn, crops competing with corn for land, and livestock commodities that use corn as a major feed source.  The spreadsheets show U.S. average costs and returns and those in major production regions for each commodity. 

Food Price Outlook. Monthly and annual estimates of the future direction of changes in the Consumer Price Index (CPI) for all food, food at home, and food away from home are available in Excel spreadsheets. ERS analyzes the impact of conomic factors on changes in the CPI and uses forecasting methods to project the range of possible changes in retail food prices due to changing commodity costs.

Glossary

Bioenergy-related terms and definitions...

Recent Research Developments

ERS Bioenergy Information and Research and ERS Bioenergy Research Plans. These materials provide an overview of current and planned ERS activities related to U.S. and international bioenergy production. Key indicators will be monitored and indepth research conducted on the impacts of bioenergy developments on agricultural systems, rural communities, food prices, and the environment.

International Conference on Sorghum for Biofuel. This conference on August 19-22, 2008, in Houston, Texas, provided a forum on the scientific status and needs for sorghum as a bioenergy feedstock. The workshop assembled international experts from government, academia, the agricultural community, and the renewable fuels industry in sorghum research and development to discuss to discuss key scientific advances for economically viable and environmentally sustainable production and utilization of sorghum as a bioenergy crop.

Integration of Agricultural and Energy Systems. Sponsored by USDA and Farm Foundation, this workshop on February 12-13, 2008, explored farming systems, markets for energy crops and co-products, and the impacts of the bioeconomy on animal agriculture, energy efficiency, and the role of biotechnology.

Global Biofuel Developments: Modeling the Effects on Agriculture. Sponsored by ERS and the Farm Foundation, this workshop on February 27-28, 2007, featured presentations on the multiple effects of biofuel policies on agricultural production and trade. Academics, private industry, and ERS staff presented and discussed various methods of analyzing and modeling the effects of biofuel policies in the United States, Brazil, the European Union, and various Asian countries, as well as the effects of such policies on developing countries.

Related Briefing Rooms

Agricultural Baseline Projections
Corn
Farm and Commodity Policy
Farm Income and Costs
Food CPI, Prices, and Expenditures
Global Climate Change
Land Use, Value, and Management
Rural Development Strategies
Soybeans and Oil Crops

Related Links

USDA Renewable Energy—News and information about USDA's renewable energy activities.

USDA Office of Energy Policy and New Uses—USDA office responsible for developing and coordinating Departmental energy policy, programs, and strategies.

Department of Energy, Office of Energy Efficiency and Renewable Energy—Office responsible for renewable energy research and technology development.

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