August 12, 2008

Washington – The US Department of Agriculture today released its World Agriculture Supply and Demand Estimates (WASDE) predicting the size of this year’s US corn harvest. According to USDA, American farmers have overcome historic obstacles and are poised to deliver the second-highest average yield and the second-largest corn crop in history. In addition, the report also noted that world production of corn is expected to increase to record levels, as farmers around the globe respond to market signals.

Renewable Fuels Association President Bob Dinneen issued the following statement in response to the WASDE:

“America’s farmers have once again responded to adversity, poised to produce the second-largest corn crop in American history. Their historic response should go a long way in silencing those Chicken Littles who sought to capitalize on the devastation of this summer’s flooding to undermine and abandon America’s movement toward cutting our dependence on foreign oil.

“The fact remains—America’s farmers, together with America’s biofuel producers, continue to make significant contributions to a secure, sustainable energy future for this nation while at the same time fulfilling their traditional role as food and feed providers. The decision by EPA to maintain the integrity of the Renewable Fuels Standard as enacted by Congress recognized this ability of the American farmer and fully appreciated the importance of the RFS to meet our nation’s energy and economic goals.”

A recap of the WASDE statistics for corn production in the US:

• Average Yield = 155 bu/acre, up from July estimate of 148.4 (the second highest average yield in history)
  
• Harvested Acres = 79.3 million acres, up from July estimate of 78.9
  
• Production = 12.288 billion bushels, up from July estimate of 11.715 (the second largest crop in history)
  
• Carry-out = 1.133 billion bushels, up from July estimate of 833 million bushels