Growing Crops for Biofuels Has Spillover Effects

USDA ERS - Amber Waves March 2009


Growing demand for corn as biofuel feedstock will transform the agricultural landscape as regional cropping patterns adjust and production practices adapt.

Volatile petroleum prices, along with Federal policies aimed at reducing U.S. dependency on oil imports and mitigating climate change, have sparked rapid growth in biofuel demand. In response, production of agricultural commodities that serve as feedstock for biofuels has increased. Federal policy initiatives and private-sector investment point to continued growth in biofuel production and, consequently, increased demand for agricultural products.

The Energy Independence and Security Act (EISA) of 2007 includes provisions for a Renewable Fuel Standard (RFS) to increase the supply of alternative fuel sources by requiring fuel producers to use at least 36 billion gallons of biofuel by 2022. The RFS provision establishes a level of 15 billion gallons of conventional ethanol by 2015 and at least 21 billion gallons of cellulosic (noncornstarch) ethanol and advanced biofuels (including ethanol from sugarcane and biodiesel) by 2022.

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