The 2007/2008 Iowa Grain/Biofuel Flow Survey Tun-Hsiang (Edward) Yu Chad Hart tyu1@utk.edu chart@iastate.edu 865-974-7411 515-294-9911 Iowa Renewable Fuels Association Panora, Iowa September 10, 2009 Department of Economics 1
Supporting Organizations Agribusiness Association of Iowa Iowa Biodiesel Board Iowa Corn Promotion Board Iowa Farm Bureau Federation Iowa Institute for Cooperatives Iowa Renewable Fuels Association Iowa Soybean Association Iowa Department of Economic Development Iowa Department of Transportation Project Partners: Iowa Department of Agriculture and Land Stewardship Iowa Office of USDA-NASS Thanks! Department of Economics 2
Final Reports Available at: 2006/07 Report: http://www.card.iastate.edu/publications/DBS/PDFFiles/08sr102.pdf 593 downloads since publication (Oct. 2008-Aug. 2009) 2007/08 Report: http://www.card.iastate.edu/publications/DBS/PDFFiles/09sr103.pdf 256 downloads since publication most downloaded file in CARD for August 2009 Department of Economics 3
Participation Survey Section Sample Returns Response Rate Grain Marketers 1,234 432 35.0% Grain Handlers 353 132 37.4% Corn Processors/Ethanol 32 11 34.4% Soybean Processors 30 10 33.3% Biodiesel 13 6 46.2% Department of Economics 4
Corn Markets for Producers 2006/07 2007/08 Department of Economics 5
Corn Markets for Elevators 2007/08 2006/07 Department of Economics 6 6
Ethanol Markets for 2006/07 Department of Economics 7 7
Ethanol Markets for 2007/08 Department of Economics 8 8
Dried Distillers Grains Markets for 2006/07 Department of Economics 9
Dried Distillers Grains Markets for 2007/08 Department of Economics 10 10
Corn Processor Notes Corn oil extraction: For 2006/07: 8% indicated they extracted corn oil 50% indicated they would by 2012 For 2007/08: 36% indicated they extracted corn oil 70% indicated they would by 2012 Distillers grains: 66% dry by volume 60% dry by volume Department of Economics 11
Corn Processors’ Infrastructure Ratings 2006/07 2007/08 Rail lines 3.08 3.69 Interstates 3.92 3.78 Primary state highways 3.42 3.54 Paved county roads 3.28 3.54 Unimproved gravel roads 3.16 3.09 Waterways 3.17 3.14 1 = Poor, 3 = Average, 5 = Excellent Department of Economics 12
Corn Processor Hindrances 2006/07 2007/08 Road weight restrictions 2.99 2.34 1 = Not at all Bridge weight restrictions 3.00 2.07 3 = Somewhat Storage capacity 3.26 3.42 5 = Definitely Unloading time 2.24 1.98 Trucking costs 3.30 3.15 Rail access 2.91 1.98 Rail service reliability 3.33 2.52 Rail service costs 4.03 3.24 Barge access 2.60 1.60 Barge service reliability 2.80 1.60 Barge service costs 2.80 2.00 Department of Economics 13
Soybean Markets for Producers 2006/07 2007/08 Department of Economics 14 14
Soybean Markets for Elevators 2007/08 2006/07 Department of Economics 15 15
Biodiesel Markets for 2006/07 Department of Economics 16
Biodiesel Markets for 2007/08 Department of Economics 17 17
Biodiesel Producer Notes 40% capacity utilization rate for 2006/07 70% capacity utilization rate for 2007/08 All of the responding plants used soybean oil Average shipment came from 125 miles away Very similar to 2006/07 Half of the plants also used animal fats and corn oil One-third of the plants had used other vegetable oils Department of Economics 18
Biodiesel’s Infrastructure Ratings 2006/07 2007/08 Rail lines 3.16 2.66 Interstates 3.90 2.97 Primary state highways 3.60 2.99 Paved county roads 3.08 2.60 Unimproved gravel roads 3.00 2.40 Waterways 3.33 2.64 1 = Poor, 3 = Average, 5 = Excellent Department of Economics 19
Biodiesel Hindrances 2006/07 2007/08 2006/07 2007/08 Road weight restrictions 1.50 1.52 1 = Not at all Bridge weight restrictions 1.50 1.34 3 = Somewhat Storage capacity 2.50 2.97 5 = Definitely Unloading time 1.30 1.69 Trucking costs 3.30 3.65 Rail access 2.60 2.50 Rail service reliability 2.67 3.01 Rail service costs 3.25 3.82 Barge access 2.45 2.80 Barge service reliability 2.09 2.25 Barge service costs 2.31 2.75 Department of Economics 20
Thank you for your time. Any questions. My web site: http://www. econ Department of Economics 21 21