The Economics of Rising Demand for Corn: Reasons Related to Ethanol and Its Uses

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The Economics of Rising Demand for Corn and the Reasons for the Increased Demand Due to Ethanol and Its' Uses Objective The objective of this study is to examine the economics of rising demand for corn and the reasons for the increased demand due to ethanol and its uses. Introduction The work of Rattray (2012) reports that the United State's "The United State's corn production and acreage has increased over time due to the growing global demand. Corn is being utilized for food, feed, industrial uses and ethanol production, but there are many factors that affect the global levels of supply and demand. Because of these factors, the corn industry has had to evolve over the past several decades to meet the increasing demand." (p.1) I. Uses of Grain Presently research for alternative uses of corn is reported as "more intensive than for any other feed grain. Agricultural biotechnology has been used to offer enhanced end-use characteristics for consumers and has designed corn to be insect resistant and herbicide tolerant. Because of these corn varieties, corn yields have further increased." (Rattray, 2012, p.1) Corn is reported to account for "93 percent of all feed grains produced in the United States"¦" (Rattray, 2012, p.1) Corn is used for many purposes including food, seed, and industrial uses and are reported to represent approximately 1/3 of the national operations. II. Production and Pricing The corn production of the United States dropped by four percent in

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