POTENTIAL CORN ACREAGE EXPANSION FOR ETHANOL PRODUCTION: WESTERN NORTH DAKOTA

Abstract

Several recent developments have stimulated farmers' interest in raising corn for ethanol production in northwestern North Dakota. The purpose of this study is to estimate the corn supply response of western North Dakota farmers for ethanol production. Two focus groups of western North Dakota farmers (Williston and Minot) were organized. The market premium over prevailing local corn prices that was required by western North Dakota farms to entice additional production of an ethanol specific hybrid was determined. Aggregation of these farm responses yielded a supply function of corn for the region. Results show that sufficient corn can be produced in the surrounding region to support a 12 million gallon ethanol facility if modest price premiums are provided. The availability of short-season hybrids adapted specifically to the region may constrain expansion.