when farmers are expecting to see this huge increase in the price of corn so they switch from another crop to corn only to find out they are still producing more corn than being used.  This economic analysis is for 2010 and only uses one variable to corn production - acres.  With the advances in corn technology I expect a minimum of 20% increase in yields by 2010.  The analysis is only calling for a 12% increase.  So where does that put the profits?  In the hands of the technology developers.

The true key to increased corn prices is in soy diesel.  The ethanol business is well along and has the eyes of investors, but the biodiesel business is just getting started.  We need more soy diesel plants and an emphasis on a B20 over the road fuel.  By increasing the demand for soy oil we increase the price of soybeans and make them more competitive for land use.

Increase the demand for corn and soybeans as a fuel will in the long run be advantageous to livestock production with the use of cheaper coproducts and alternative feed stocks plus increased protein in the livestock diet.

The common mistake a farmer makes is to look at a report like this and forget they are talking 4 years from now.  By making the adjustments in the first year the farmer locks in a loss for the next 3 years.  We must proceed very cautiously and only make acreage adjustments when we can lock in profits by making the switch.