Pressure mounts to release 7 million acres from Conservation Reserve for grain production as price, shortage fears grow

March 13, 2008

The American Bakers Association joined a chorus of organizations calling for release of seven million acres of land from the US Conservation Reserve Program, which it said could be accomplished “without sacrificing environmental goals.”Â Agriculture Chairman Colin Peterson floated the proposal, favored by ethanol producers as well as livestock interests.

However, Secretary of Agriculture Ed Schafer has ruled out early release for 2008 and cautioned against an expectation of release for 2009. “A lot of people say, let’s farm that land [and] put some downward pressure on prices. We’re not so sure about that.” 37 million acres of marginally productive land have been enrolled in the CRP, of which 7 million have been identified as suitable for corn production.

Kansas State University professor Barry Flinchbaugh, told told Agriculture Online “Now is exactly the wrong time, politically, to open up the CRP,” referring to delicate negotiations over the much-delayed Farm Bill.

Of 94 million acres of corn planted in 2007, 23 million were used for ethanol, 39 million for feed, and 14 million for export. An additional 12 million acres will be needed for ethanol by 2010 to match mandated increases in corn ethanol blending.

Overall in the US there are 458 million acres of crop production, 66 percent of them planted with corn and soybeans. Cropland accounts for 20 percent of US acreage, while grassland and range accounts for 26 percent and 32 percent is forestland.

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Written by Jim Lane · Filed Under Policy, Producer News