U.S. Ethanol Explosion

Wash D.C.--U.S. ethanol production climbed to almost 5 billion gallons in 2006, up nearly 1 billion gallons from 2005. Despite the speed and magnitude of this increase, the industry is stepping up the pace of expansion, with production expected to top 10 billion gallons by 2009. Numerous forces are driving the ethanol production increase including the conditions of the market and govt. policy. The Energy Policy Act of 2005 provides economic incentives in addition to numerous Federal and State biofuel programs. The ethanol market is of greater importance in the agriculture industry than the gasoline market. In 2006, corn represented 14 percent of ethanol production and the future percentage is projected at 30 percent with the largest influence in the agriculture markets. For more information visit the USDA-ARS website at www.ars.usda.gov/main/main