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Impacts of Increased Local Processing

E.   Impacts of Increased Local Processing (3 projects)

       The estimated impact of growth in ethanol production on Iowa grain distribution and handling operations will be determined.   

       Producer groups will likely want to construct soybean processing plants in similar fashion to the producer ownership of the ethanol industry. 


Project 1.  Survey and Analysis of Ethanol Producers Sourcing Corn in Iowa

The goal of this project is to support sustainable growth of the Iowa ethanol industry through better organization of input corn and output co-product market chains.


Objectives for FY06


1.      Create an objective data set to define the scope and variation involved in the current industry activities surrounding grain origination methods, impact on grain storage and co-product handling/marketing.

2.      Develop analytical tools that can track trends within the industry.

3.      Analyze the data to measure impacts of growth on the ethanol industry and its input supply chain.


Expected Outputs


·        A report that documents current input procurement methods and trends including interest in procuring specialty grains and traits, and projected challenges for grain storage in Iowa. 

·        An analysis of grain co-products produced, markets utilized and a discussion of potential issues and policy implications for co-products.


Mary Holz-Clause; VAAP Staff


Project 2.  Specialty Soybean Study


Objectives for FY06 and Expected Outcomes


1.      Describe current soybean processing capacity in Iowa as to type, location, capacity, ownership.

2.      Describe current and emerging technologies for oil extraction in terms of product output quality, extraction efficiency, actual or projected cost per unit crushed, construction/size constraints, throughput capacity, and any other parameters necessary to make planning decisions.  Examples: small solvent like Creston, Expeller press, SFE (CO2), and other.

3.      Make a preliminary estimate of production profitability/cost versus volume for the various options.  ISU has a processing simulation model; Innovative Growers has a costing spreadsheet, etc  as starting points or tools to use.

4.      Identify possible specialty marketing opportunities, if any, that could arise out from the specific processing options, more than just having the protein and oil of the traits contained in the raw soybeans.  Eg.  frying stability, appeal to natural markets, etc. etc.

Mary Holz-Clause;  VAP staff


Project 3. Grain Storage and Management Training

       Collectively, these outputs will form a major base of scientific and applied knowledge to support the change of US corn production from commodity trading with long distance logistics to product sales to nearby processing facilities. 


Objectives for FY06


1.      Compile information about the amount, location and condition of the grain storage infrastructure in the Western and Eastern Corn Belt states.

2.      Compile information about storage performance (cost, damage increase, shrink, nature of damage created) for the 2004, 2005, and 2006 crop years.

3.      Assemble and review projections for the amounts and locations of corn production, demand and usage during the study years and the five years beyond (through 2011).

4.      Project the needs for corn quality traits to meet shifting usage and storage patterns.

5.      Project the need and types of storage (maximum cost; minimum damage) that will be needed to meet usage patterns.

6.      Develop a training program for farmers, elevator operators and associated grain industry professionals in optimum storage structure design and quality grain management, given demand, cost and quality constraints.


Expected Outputs


·        Inventory of existing corn storage capacity, with projections for future needs, types, and locations.

·        Estimates of the interaction among corn quality traits, changing user demands, and storage success/costs.

·        Estimates of the specific physical and intrinsic quality changes that occur when corn becomes damaged (by the Official Grade definition) in various types of storage regimes.

·        Estimates of storage performance versus construction and operating costs.

·        A major effort documented through web programs, meetings, and print materials to provide awareness and training for producers and elevator operators in current storage/quality needs and interactions.

·        Refreshed and targeted programs for ongoing training in storage and handling operations.


Charles R. Hurburgh, Jr.;GQI Program Coordinator