Corn demand highest since World War II
Ethanol market boosts prices
Sunday, June 10, 2007
KNOXVILLE - Farmers once were told to produce less corn. Today, America's food and fuel systems want as much as they can get.Demand for corn encouraged American farmers to plant more acres of corn this year than any year since World War II, according to the Illinois Farm Bureau. In Illinois, farmers this spring are expected to have planted a record 12.9 million acres to corn, 14 percent more than last year.
Corn growers have a bright future, largely led by the demand for corn-based ethanol fuel, which has boosted corn prices to decade highs. Market opportunities are greater today than even a few years ago, which has created an interesting time to be in the business of growing corn. The opportunities were a reason to celebrate on Friday, when about 140 corn growers and agribusiness representatives enjoyed a steak dinner at the 22nd annual Knox County Corn Growers Association meeting at Laurel Greens Golf Course.
"People on the board 15 to 20 years ago struggled with, 'What is ethanol?' " John Hennenfent, president of the Knox County Corn Growers, told the crowd. "Today you can hardly buy fuel without ethanol in it."
Farmers who have grown corn for decades remember ethanol in its infancy, including corn growers Mike Hennenfent of Gilson and Rollie Main of Altona. They also remember when the government used to discourage corn production.
Today, production is largely without limits. Acres are being converted to corn and technology alone has allowed Hennenfent's Twin Hill Farms operation to increase production per acre by 30 percent in the last 15 years.
"We've increased our production and broadened our marketing opportunities," said Mike Hennenfent, a 46-year farmer. "Back in the '50s and early '60s there was one market for corn, and that was livestock."
The livestock still is the primary user of corn, consuming 51 percent of last year's crop, according to the National Corn Growers Association. About 19 percent was exported and just over 18 percent made ethanol.
Today's corn industry, including its technology and market opportunities, reminded Main of something a junior college professor told him more than 40 years ago that holds true.
"We don't even know what we don't know yet," he said.
