From China to America, monumental forces are driving global demand for food, feed and renewable fuel. Faced with a worldwide credit crunch, demand will probably take a breather, but the long-term trends are still strong.

Demand Surge
Can U.S. farmers grow enough crops for food, feed and fuel?
By Todd Neeley

In the eyes of many, ethanol has become the 4-billion-bushel gorilla. Critics blame the biofuel for boosting grain prices, which in turn have fueled higher feed and food bills.

When flooding in the Corn Belt washed away fields in June, it sparked predictions the corn harvest would fall short of demand, driving many ethanol producers out of business and leading to even higher food prices. Ethanol critics called for rolling back the federal Renewable Fuels Standard.

But lo and behold, in August USDA forecast a 12.3-billion-bushel corn crop. The events of the 2008 growing season suggest U.S. farmers may be poised to answer the critics who question whether farmers can supply crops for food, feed and fuel.

Bring it on. Terry Hilgedick, a farmer and ethanol investor in Hartsburg, Mo., says while the rest of the world seems to doubt farmers' ability to meet increased demands, farmers welcome the challenge.

"It has made farming more enjoyable," he says. "We need increased demand to keep profitable. It has been a challenge and it's nice to have a little fun in farming."

In addition to growing corn, wheat, soybeans and some produce on his family farm, Hilgedick has invested in four farmer majority-owned ethanol plants in Missouri where he also delivers his corn.

Farmer-owned ethanol plants once represented the vast majority of facilities in operation. That since has changed as the cost to build larger plants has made it necessary for companies to look for additional investors.

In developing the ethanol industry, Hilgedick, who is on the board of directors for the Missouri Corn Growers Association, points out that farmers have proved what they can accomplish.

"For all of the attacks in the media, ethanol is the only thing that has made a dent in our dependence on foreign oil," he explains. "Farmers had the guts to step up and build these things. There's nothing to be ashamed of. The story is the same as it has always been. Those selling points are as valid as they were from day one."

Land use debate. Bradley Lubben, assistant professor and Extension public policy specialist at the University of Nebraska, says it's time to shift the food-versus-fuel debate away from supply questions to the future of land use.