February 12, 2010

On this week’s Market Journal, UNL ag economist Dennis Conley looks at UNL research on current and projected use of dried distillers grains and the potential for marketing surplus production nationally. His study shows there's a market for distillers grain, given the right mix of costs and income.

Industrial and food use of corn has grown dramatically with the increase of ethanol plants. Ethanol production in 2009 was 10.6 billion gallons nationally. When production capacity currently under construction is included, Conley estimates ethanol production will reach 15 billion gallons by 2012.

As part of a USDA Economic Research Service Project, Conley looked at the production of ethanol and its coproduct, distillers grains. Researchers estimated how much dried distillers grains would be needed to feed all the cattle in a state (a cattle diet can include up to 40% dried distillers grains) and identified which states produced a surplus and which would have a deficit. They considered the feasibility of shipping via rail and estimated likely export patterns for the coproduct. (Nebraska would ship to Colorado.)

Learn more about Conley’s research and the implications for Nebraska corn producers and feeders on this week’s Market Journal. Also view the presentation Conley made to the Internationl Food and Agribusiness Management Association: "Food versus Fuel: Adoption and Distribution of Distillers' Grains from Ethanol"addresses the potential geographic distribution of DDGs as more ethanol plant production approaches the 15 billion gallon mandate.

Additional Topics

Central Plains Irrigation Conference and Exposition — Extension Irrigation Specialist Dean Yonts discusses the Feb. 23-24 conference in Kearney. Speakers will include water experts from several states who will share how to make the most efficient use of the available water for crop production and related water topics. Attendees will even be among the first to learn more about how much water invasive species really use, based on Nebrask researh. See MORE

Spring Won't Come to the Central Plains Anytime Soon — State Climatolgist Al Dutcher shares his short- and long-term forecasts.

The Use of Antibiotics in Good-Producing Animals — Dr. Elizabeth Parker, chief veterinarian for the National Cattlemen's Beef Association.

Use Puts and Be Ready to Lock in Cattle Prices — Mike Briggs of Briggs Feedlot in Seward discusses the cattle market and opportunities for exports.

Market Journal is also available on the Web and by podcast at marketjournal.unl.edu

Broadcast Times

NET1 – Saturday, 7 a.m. CT
NET2 – Sunday, 9 a.m. CT
Dish Network, Channel 9411

Friday, 12:30 p.m. CT
Sunday, 9:30 p.m. CT
Wednesday, 8:30 a.m. CT

Market Journal is also available on the Web and by podcast at marketjournal.unl.edu