January 12, 2009 – Washington – Today, the US Department of Agriculture released its final estimates for the size of the 2008 corn crop, confirming that American farmers produced the second-largest crop on record with the second highest average yield per acre in history. The yields and total production level are particularly noteworthy given the unprecedented adverse weather conditions that plagued much of the Corn Belt during the early part of the growing season and a later-than-usual harvest in the fall.

“January’s USDA report paints a very clear picture of the productivity potential of American farmers and dispels the misconception that ethanol is at the root of higher corn and food prices,” said Renewable Fuels Association President Bob Dinneen. “With an expected surplus of nearly two billion bushels at the end of this marketing year, it is clear that farmers can supply ample feedstock for food, feed, fiber and renewable fuel production.”

Dinneen added, “In addition, this report also demonstrates the real size of the demand for corn by ethanol production. At approximately 21 percent of the net total corn use, ethanol demand for corn is providing a much-needed value added market for farmers without having the market-distorting impacts many in the food processing and factory livestock production industries have claimed.”

USDA also released updated world corn supply and demand estimates today, showing slightly reduced demand for corn use for ethanol. Because of reductions in all corn demand segments, USDA dramatically raised its projection of corn carry-out (or surplus) at the end of the 2008/09 marketing year. At a projected 1.8 billion bushels, projected 2008/09 carry-out would be at one of the highest levels in the past decade.

The report also continued the trend of lowering expected prices, reducing the projected 2008/09 average price to $3.90/bushel. These trends – lower expected corn prices, lower expected use, and increasing available supply – are consistent with what the ethanol industry has been projecting and undermines the credibility of those claiming the ethanol industry was responsible for higher food prices as a result of increasing demand for corn used in ethanol production.

“The misinformation about ethanol’s role in higher food prices was a deliberate attempt to confuse and mislead the American public, who are still waiting for lower prices in the supermarket,” said Dinneen. “Now it is time to put this manufactured hysteria behind us and focus on what is important – ensuring a secure and sustainable energy future for this country in part built on the increased production and use of all types of renewable fuel.”

The following is a look at the USDA numbers with context as they relate to the US ethanol industry:

Note: This chart accounts for the 1/3 of all corn bushels used in ethanol production that are returned to livestock feed markets in the form of distillers grains and feeds, accurately reflecting the net use of corn for ethanol production.