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 Special consideration must be made for the
independent and smaller farms that engage within the biofuels sector
since the ability to read changing market signals is one of the most
challenging aspects of an industry that still remains fraught with
uncertainty. The difficulty of making the right choices when
determining how many acres to plant in corn and how many to plant in
beans can become a make-or-break decision for those farmers who are
operating close to the margins. Basing such assumptions upon
anticipated commodities prices and wildly-erratic oil futures is
challenging enough, but this becomes all the more difficult when
governmental targets shift as a result of Renewable Fuel Standard
and smaller producers often find themselves operating in the dark
when making intended acreage decisions.
 By and large the biofuels industry has aided development in the
agricultural sector while not hindering the capacity of Illinois
farmers to produce feed and foodstuffs. The nation’s 2015 corn
harvest, the third-largest ever, produced a total of 13.6 billion
bushels and demonstrated that the U.S. has the capacity to produce
sufficient amounts of fuel, feed, and food from this bounty.
Significant in this consideration is the marketing of residual
co-products for feed and other purposes once ethanol and biodiesel
have been extracted from the initial biomass. Accordingly, we have
not faced the food vs. fuel dilemma that many had predicted in the
early years of the biofuels sector. It is important
that we begin to plan for and invest in the changes that will be
necessary for the next generation of biofuel development, and doing
so now can position Central Illinois farms and rural communities to
prosper from the continued growth of this economic sector. The
advent of celluloid ethanol from biomass is one of the most
promising aspects to consider. The use of corn stover, straw, or
other harvest residue can provide additional material that can be
converted into biofuel. Additionally, farmers might be encouraged to
plant switchgrass in marginal lands that also can be used for this
purpose while not diminishing acreage going into corn production.
This approach has been used effectively in Brazil and other nations
that have encouraged innovation in their expanding next-generation
biofuels sectors. In addition, there are small communities around
the U.S. that have obtained federal grant money to develop local
initiatives in which yard waste is converted into biofuel. We may
find innovative communities in Central Illinois that would be
willing to pilot such an initiative to foster further local economic
development. [to
top of second column] |
Planning ahead for the next generation of biofuels production must
also include consideration of expanding U.S. exports within this
sector, and much of this could be targeted to hemispheric markets
where the potential for development is great. This would require the
reduction of trade barriers that are in place. We must also consider
the gradual reduction of subsidies within the biofuels sector, but
this must be pegged to greater expansion of real opportunities for
both suppliers and producers within this industry. Expanding markets
can provide great benefits for all parties concerned.
Although the expansion of the biofuels sector would ideally work
best if left to market forces alone, the strained relationship that
exists between the biofuels industry and the petroleum industry
makes continued regulation necessary for the time being. In
addition, some federal oversight is needed to guarantee national
security and food security concerns as well as environmental quality
issues related to the production and distribution of biofuels
products. The U.S. Congress must support pro-growth policies that
can aid the development of next-generation biofuels while at the
same time guaranteeing that sustainability is one of the guiding
principles that directs this development.
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