1. 2006-07 Iowa Grain and Biofuel Flow Survey
Iowa Institute of Cooperatives
2009 Winter Meetings
Chad Hart Tun-Hsiang (Edward) Yu
Assistant Professor Assistant Professor
Iowa State University University of Tennessee

2. Thanks! Sponsoring Groups Project Partners
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
USDA-NASS, Iowa Field Office
Thanks! 2

3. Survey Format 5 distinct surveys Grain Marketers (Farmers)
Grain Handlers
Corn Processors (including Ethanol)
Soybean Processors
Biodiesel Producers

4. Survey Participation Survey Section Sample Usable Returns
Response Rate
Grain marketers
4,000
1,234
30.9%
Grain handlers
981
353
35.2%
Corn processors /ethanol plants 32 13
40.6%
Soybean processors 30 11
36.7%
Biodiesel 9
69.2% 4

5. Grain Marketers Results
2.05 billion bushels of corn were produced during the 2006/07 marketing year.
82% sold, 11% utilized on the farm, 7% remaining for future sales
510 million bushels of soybeans were produced
92% sold, 1% used on the farm, 7% expected to be marketed
Over 60 million bushes of corn and 18 million bushels of soybeans were containerized on the farm

6. Grain Marketers Results
Average trucking distance by farmers ranges from 4 miles for smaller wagons (<500 bu.) to 24.5 miles for semis.
Average distance to market:
Unimproved gravel roads: 5.5 miles
Paved county roads: 8 miles
State highways: miles

7. Producer Markets for Corn

8. Producer Markets for Corn

9. Shifting Markets for Corn
percent

10. Producer Markets for Soybeans

11. Producer Markets for Soybeans

12. Shifting Markets for Soybeans
percent

13. Transportation for Corn

14. Transportation for Soybeans

15. Grain Hauling Vehicles

16. Projected Change in Fleet by 2012
percent

17. Farmer’s Infrastructure Rating
Poor
Excellent 1 2 3 4 5
N/A
No Response
Rail lines
10%
39%
17% 4% 9%
12%
Interstates 1% 3%
29%
11%
Primary state highways
38%
33% 6%
Paved county roads 5%
14%
37%
28%
Unimproved gravel roads
20%
36%
Waterways
27% 2%
23% 17

18. Farmer’s Marketing Hindrances
Not at all
Somewhat
Definitely 1 2 3 4 5
N/A
No Response
Trucking costs
14%
11%
26%
19%
16% 4%
Bridge weight restrictions
29%
12%
20%
13%
Rail service costs 8%
17%
Rail access
23%
10%
15%
Rail service reliability
18%
Road weight restrictions
31%
24% 9% 3%
Elevator unloading time
22% 18

19. Grain Handlers Results
About 1.09 billion bushels of corn and 311 million bushels of soybeans were processed or shipped.
More than 2 million tons of ethanol co-products were handled during the 2006/07 marketing year.
Nearly 34 million bushels of corn and 11 million bushels of soybeans were containerized by Iowa grain handlers.
Corn shipments
1999/2000: 43% by truck, 57% by rail
2006/07: 66% by truck, 30% by rail

20. Handler Markets for Corn

21. Handler Markets for Corn

22. Shifting Markets for Corn Handlers
percent

23. Handler Markets for Soybeans

24. Handler Markets for Soybeans

25. Shifting Markets for Soy Handlers
percent

26. Handlers – Corn Transport

27. Handlers – Soybean Transport

28. Handler’s Infrastructure Rating
Poor
Excellent 1 2 3 4 5
N/A
No Response
Rail lines 4% 9%
33% 8% 0%
36%
11%
Interstates 1% 2%
42%
41% 6% 5%
Primary state highways
15%
48%
25% 3%
Paved county roads
22%
44%
24%
Unimproved gravel roads
10%
26%
46%
12%
Waterways
29% 7%
43%
13% 28

29. Handler’s Marketing Hindrances
Not at all
Somewhat
Definitely 1 2 3 4 5
N/A
No Response
Trucking costs 4%
11%
24%
28% 2% 3%
Availability of seasonal labor
10%
12%
25%
21%
26%
Elevator storage capacity 7%
30% 5%
Rail service costs
13% 6% 8%
15%
44%
Elevator unloading time
27%
Bridge weight restrictions
18%
14%
Rail access
17%
33% 29

30. Corn Processor Results
2 billion gallons of ethanol were produced
Ethanol accounted for 85% of total dollar sales
92% of corn needs met by Iowa corn
Average corn shipping distance: 32 miles
Average ethanol shipping distance:
By truck in Iowa = 98 miles
By rail to other states = 955 miles

31. Ethanol and Co-Product Markets

32. Ethanol Markets Note: Percentage sold to
other states and countries = 52%

33. DDG Markets Note: Percentage sold to
other states and countries = 25.5%

34. Soybean Processors Results
Nearly 757 billion pounds of soybean oil and 6.8 million tons of soybean meal were produced
73% do not expect to expand capacity
95% of processed soybeans were from Iowa
Average truck haul of soybeans: 48 miles
Average soybean meal shipping distance:
In-state: Truck: 69 miles
Other states: Truck: 362 miles; Rail: 1,242 miles

35. Soybean Processors Results
Soybean oil sales for industrial use
In-state: 36.5%
Other states: 63.5%
Soybean oil sales for food use
Other states dominate
Soybean meal and oil sales account for 37% and 29% of total dollar sales, respectively.

36. Soybean Meal Markets Note: Percentage sold to
other states and countries = 33.3%

37. Biodiesel Producers Results
Biodiesel represented 94% of total dollar sales
40% capacity utilization rate for 2006/07
70% do not plan to add on-site crushing capacity
70% of soybean oil purchased from Iowa sources
Average shipping distance = 114 miles (by truck)

38. Biodiesel Producers Results
Out-of-state soybean oil:
68% shipped by truck, average haul 126 miles
34% shipped by rail, average haul 371 miles
Iowa biodiesel sales:
65% shipped by truck, average haul 67 miles
Out-of-state biodiesel sales:
56% shipped by truck, average haul 268 miles
44% shipped by rail, average haul 1,167 miles

39. Biodiesel & Glycerin Markets

40. Summary
Continued demand for corn from the livestock and ethanol industries is expected to generate more demand for in-state transportation.
Although the share of export markets decline, the volume may increase given the expanding harvests.
The total vehicles owned by farmers continue to decline, however, the number of heavier vehicles (large wagons and semis) is expected to increase.

41. Summary
Most of the biofuels and co-products were sold to other states, translating to a higher demand for rail services.
Interstate highways received the most positive feedback, gravel roads received the least.
High transportation costs was the common hurdle for all five surveyed groups.
A second round of surveys, this time for the 2007 crop, is being conducted now.

42. Thank you for your time. Any questions. My web site: http://www. econ
Thank you for your time! Any questions? My web site: Survey Report: