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A large expansion in ethanol production is underway in the United States. Cellulosic sources of feedstocks for ethanol production hold some promise for the future, but the primary feedstock in the United States currently is corn. Market adjustments to this increased demand extend well beyond the corn sector to supply and demand for othercrops, such as soybeans and cotton, as well as to the livestock industries. USDA¿s long-term projections, augmented by farmers¿ planting intentions for 2007, are used to illustrate anticipated changes in the agricultural sector. Graphs.
Constraints to future growth of the ethanol industry will present challenges to meeting the ambitious mandates for expanded biofuel use set forth in the Energy Independence and Security Act of 2007. New production technologies and supporting infrastructures will be needed to reach cellulosic biofuel mandates. Most U.S. motor vehicles are restricted by manufacturers' warranties to use gasoline containing no more than 10 percent ethanol, which will limit growth in biofuel demand.