New S&P Global Energy Research Finds that Expanding Biofuel Demand Could Boost U.S. Agriculture, Strengthen Rural Economies, and Increase Food Production
A new study by S&P Global Energy, commissioned by U.S. Farmers and Ranchers in Action (USFRA), suggested that expanding biofuel demand could reshape American agriculture while strengthening rural economies and improving global food and energy security.
The report, "Fueling Agriculture: Biofuels as the Catalyst," outlined how biofuels can drive long-term agricultural growth through increased market demand and technological innovation.
"This research demonstrates that biofuels are not just an energy solution—they're an economic engine that could transform farming's future," said Maryland farmer Chip Bowling, Vice Chair of USFRA.
"New evidence offered by highly respected experts at S&P Global Energy show that biofuels can unlock agriculture’s potential to provide abundant and affordable food, feed and fuel,” said Bowling.
The study noted that agriculture faces several major challenges as crop production continues to outpace demand while fuel consumption patterns evolve.
Key findings include:
- Global population growth is expected to slow to about 0.4% by 2050, reducing food demand growth.
- Corn yields continue rising, creating larger grain supplies than traditional markets can absorb.
- U.S. ethanol demand could decline by nearly 50% by 2050 if current blending rates remain unchanged.
- Without additional demand, U.S. corn acreage could shrink by about 31% by 2050.
- Expanded biofuel production could triple worldwide by 2050.
- Stronger biofuel markets could encourage investment in precision agriculture, advanced seeds, and regenerative farming.
- Corn acreage could remain stable while production increases through improved yields.
- Food and feed supplies could grow by 45% under higher biofuel demand scenarios.
"The 1980s taught us what happens when farmers have no markets. Biofuels reversed that story—and we can't afford to go back," said Kip Tom, Former U.S. Ambassador to the UN Agencies for Food and Agriculture.
The report concluded that stronger biofuel markets could accelerate agricultural innovation while supporting food security and economic growth worldwide.
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