Bioenergy

Overview

Rising fossil fuel prices and policy changes, including the passage of the Energy Policy Act of 2005, have created an environment where research development and investment in renewable energy sources have gained new momentum. Among renewable energy sources, bioenergy derived from plant materials has been one of the most rapidly growing sectors. Although most bioenergy production currently comes from agricultural crops such as grains, oilseeds, and sugar, research is increasingly focused on cellulosic sources of biomass such as wood and perennial grasses, use of which would expand the range of potential feedstocks. In the United States at this time, ethanol (produced mainly from corn) is the largest source of bioenergy used as a fuel additive or substitute for petroleum fuel, while biodiesel (made from vegetable oils and fats) provides a smaller share of bioenergy.

Biofuels currently account for roughly 3 percent of overall transportation fuel use in the United States, and the use of biofuels is expected to exceed the Renewable Fuels Standard target of 7.5 billion gallons established for 2012. The rapid increase in grain-based ethanol production and the potential use of cellulosic materials as an ethanol feedstock affects agricultural markets, local communities, consumer prices, and environmental quality. ERS information products include current estimates and projections of commodity supply, demand, and retail food prices. Further information and analyses describe conditions of the U.S. agricultural system, land use, rural communities, and the environment, and the impacts that bioenergy development may have on these areas.

Features

A workshop, Integration of Agricultural and Energy Systems, sponsored by USDA and Farm Foundation, will be held in Atlanta, Georgia, on February 12-13, 2008. The workshop will explore farming systems, markets for energy crops and co-products, and the impacts of the bioeconomy on animal agriculture, energy efficiency, and the role of biotechnology. Register here.

The Future of Biofuels: A Global Perspective (November 2007). Global biofuel production tripled between 2000 and 2007, but still accounts for less than 3 percent of the transportation fuel supply worldwide. Biofuels will likely be part of a portfolio of solutions to high energy prices, including conservation, more efficient energy use, and use of other alternative fuels.

Recommended Readings

Ethanol Expansion in the United States: How Will the Agricultural Sector Adjust? (May 2007). Corn is currently the primary feedstock for ethanol in the United States. Market impacts of the expansion in ethanol production 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. See narrated slideshow for an overview; see related Amber Waves feature U.S. Ethanol Expansion Driving Changes Throughout the Agricultural Sector (September 2007).

An Analysis of the Effects of an Expansion in Biofuel Demand on U.S. Agriculture (May 2007). This analysis assesses the effects on agriculture of further expansion of biofuels production than that in USDA’s February 2007 long-term projections and reviews the potential for cellulosic ethanol production. Two scenarios were developed to evaluate the effects of biofuel production on crop markets, national and regional livestock markets, farm income, and the environment for crop years 2007-16.

USDA 2007 Farm Bill Theme Paper: Energy and Agriculture (August 2006) describes the role of U.S. agriculture in energy production and efforts to conserve energy use in agriculture, discusses and evaluates energy programs administered by USDA, and concludes with a discussion of general policy approaches associated with energy and agriculture.

See all recommended readings...

Recommended Data Products

Feed Grains Database. Monthly and quarterly data on corn used for ethanol are available via custom queries. Feed yearbook tables have data on imports/exports of ethyl alcohol and imports/exports of brewers' and distillers' dregs and wastes (the trade categories for ethanol and distillers' dried grains from ethanol plants). Additional country data and earlier data than contained in the yearbook tables can be obtained using custom queries.

Ethanol Co-Products Used For Livestock Feed. A survey by USDA's National Agricultural Statistics Service of beef, dairy, and hog producers in 12 Midwestern States to determine current usage of distillers grains, essential feed characteristics, and concerns keeping producers from using distillers grains. 

Commodity Costs and Returns. Annual farm cost and return estimates for corn, other major field crops, and livestock commodities are available in Excel spreadsheets.  These estimates track the relative costs and returns for corn, crops competing with corn for land, and livestock commodities that use corn as a major feed source.  The spreadsheets show U.S. average costs and returns and those in major production regions for each commodity. 

Food Price Outlook. Monthly and annual estimates of the future direction of changes in the Consumer Price Index (CPI) for all food, food at home, and food away from home are available in Excel spreadsheets. ERS analyzes the impact of economic factors on changes in the CPI and uses forecasting methods to project the range of possible changes in retail food prices due to changing commodity costs.

Recent Research Developments

ERS Bioenergy Information and Research and ERS Bioenergy Research Plans 2007-08. These materials provide an overview of current and planned ERS activities related to U.S. and international bioenergy production. Key indicators will be monitored and indepth research conducted on the impacts of bioenergy developments on agricultural systems, rural communities, food prices, and the environment.

Global Biofuel Developments: Modeling the Effects on Agriculture. Sponsored by ERS and the Farm Foundation, this workshop on February 27-28, 2007, featured presentations on the multiple effects of biofuel policies on agricultural production and trade. Academics, private industry, and ERS staff presented and discussed various methods of analyzing and modeling the effects of biofuel policies in the United States, Brazil, the European Union, and various Asian countries, as well as the effects of such policies on developing countries. The effects on agriculture vary by policy, feedstock used, byproducts, infrastructure, and investment level. Commodity prices, crop area allocation, livestock feeding, and commodity trade are affected in countries producing ethanol and biodiesel. Also discussed were future modeling efforts to capture the effects of producing ethanol from cellulosic sources.

Related Briefing Rooms

Agricultural Baseline Projections
Corn
Farm and Commodity Policy
Farm Income and Costs
Food CPI, Prices, and Expenditures
Global Climate Change
Land Use, Value, and Management
Rural Development Strategies
Soybeans and Oil Crops

Related Links

USDA Renewable Energy—News and information about USDA's renewable energy activities.

USDA Office of Energy Policy and New Uses—USDA office responsible for developing and coordinating Departmental energy policy, programs, and strategies.

Department of Energy, Office of Energy Efficiency and Renewable Energy—Office responsible for renewable energy research and technology development.

See all related links...