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 The availability of ethanol and biodiesel at the fuel pump is becoming more prevalent. Rising fuel prices, environmental concerns, pressures for oil independence, and Federal energy policy are creating a strong market for renewable energy.
Bioenergy is renewable energy derived from biological sources, to be used for heat, electricity, or vehicle fuel. Biofuel derived from plant materials is among the most rapidly growing renewable energy technologies. In the United States, corn-based ethanol is currently the largest source of biofuel as a gasoline substitute or additive, and recent energy legislation mandates further growth of both corn-based and advanced biofuels from other sources. Growing biofuel demand has implications for U.S. and world agriculture.
ERS is approaching bioenergy issues in several ways:
- Monitoring the state of the agricultural system and rural communities;
- Providing market analyses;
- Developing projections of commodity supply, demand, and retail food prices; and
- Conducting in-depth research on policy-relevant topics.
| Global Impacts of Biofuels |
 The Future of Biofuels: A Global Perspective (November 2007)
With near record oil prices, alternative fuels such as biofuel—made most commonly from corn, sugarcane, and vegetable oil—has drawn attention worldwide. Global biofuel production has tripled from 4.8 billion gallons in 2000 to about 16.0 billion in 2007, but still accounts for less than 3 percent of the global transportation fuel supply. About 90 percent of production is concentrated in the United States, Brazil, and the European Union (EU). Production could become more dispersed if development programs in other countries, such as Malaysia and China, are successful.
 Rising Food Prices Intensify Food Insecurity in Developing Countries (February 2008)
The use of food crops for biofuels, coupled with greater food demand, has reversed the path of declining price trends for several commodities. For highly import-dependent or highly food-insecure countries, any decline in import capacity stemming from rising food prices can have challenging food security implications. Food aid, a key safety net source, has stagnated during the last two decades, and its share has declined relative to total food imports of low-income countries.
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| Impacts of Ethanol Expansion in the United States |
 Ethanol Expansion in the United States: How Will the Agricultural Sector Adjust? (May 2007)
A large expansion in ethanol production is underway in the United States. Adjustments in the agricultural sector to this increased demand will continue for many years as interest grows in renewable sources of energy to lessen dependence on foreign oil. Although the primary feedstock for ethanol production in the United States currently is corn, market adjustments 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.
 Corn Prices Near Record High, But What About Food Costs? (February 2008)
The effect of higher corn prices on U.S. retail food prices are examined 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.
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| Additional ERS Research |
Bioenergy Briefing Room
With interest in renewable energy sources intensifying, the ERS online briefing room provides links and information on commodity supply and demand, retail food prices, and impacts of bioenergy development on the food/farm sector.
Agricultural Baseline Projections Briefing Room
An online presentation of USDA’s February 2008 longrun (10-year) projections for the agricultural sector for 2008-17. Projections cover agricultural commodities, agricultural trade, and aggregate indicators of the sector, such as farm income and food prices.
ERS Bioenergy Information and Research
ERS Bioenergy Research Plans 2008-09
These materials provide an overview of current and planned ERS activities related to bioenergy. ERS is monitoring key data on the agricultural system and rural communities. Plans are underway to conduct indepth research on the impacts of bioenergy development on commodity markets, rural communities, food prices, and the environment, as well as farm policy implications.
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Ethanol: Fueling Farm-Sector Adjustments
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