@article{Babcock:207239,
      recid = {207239},
      author = {Babcock, Michael S.},
      title = {Transportation impacts of increased ethanol production: A  kansas case study},
      address = {2010-03},
      number = {1430-2016-118667},
      pages = {28},
      year = {2010},
      abstract = {The rapid expansion of the U.S. biofuel industry has  driven the Kansas agricultural transportation market into a  new era. Nationally, fuel alcohol production rose from  1,630 million gallons in 2000 to 9,239 million in 2008, a  467% increase. The number of ethanol production plants  increased from 54 in January 2000 to 170 in January 2009, a  215% increase. Many factors have contributed to the growth  of the U.S. ethanol industry. Energy security and energy  independence from unstable foreign countries has increased  U.S. ethanol output. Global warming caused in part by  combustion of fossil fuels has encouraged consumption of  ethanol. Rural economic development related to corn and  ethanol production has contributed to biofuel expansion.  Federal energy policies have also played a role. The Energy  Policy Act of 2005 includes the Renewable Fuel Standard  Program (RFS) which mandates the minimum amount of  renewable fuels to be blended into gasoline. The RFS  doubles the use of ethanol by 2012. The Energy Independence  and Security Act of 2007 further expands the RFS by  requiring that 36 billion gallons of renewable fuels be  blended into gasoline and diesel by 2022. The record high  prices of oil in the first half of 2008 contributed to  ethanol production growth. However, the substantial decline  in oil prices which began in the Fall of 2008 has  contributed to a slowdown in ethanol demand. These national  trends have occurred in Kansas as well. At the end of 2009,  there were 10 operational ethanol plants in Kansas with a  combined annual capacity of 438 million gallons. Of the 438  million gallons of capacity, 81% became operational between  2004 and 2008. The growth of ethanol production in Kansas  has affected the Kansas corn and sorghum markets in unknown  ways with resulting implications for Kansas agricultural  transportation. 2 Traditionally, Kansas corn was delivered  by motor carrier at harvest to the nearest country grain  elevators. Prior to the expansion of ethanol production in  Kansas, the primary destination corn markets of Kansas  country elevators were Kansas, Oklahoma, and Texas  livestock feedlots with motor carriers accounting for all  of these shipments. In Kansas, most of these corn shipments  went to the western one-third of the state which accounts  for 77% of the feedlots in Kansas. Some corn was shipped  from country elevators by truck to alcohol plants in Kansas  and Nebraska. About 15-20% of the Kansas corn was shipped  from country elevators by truck to large terminal elevators  in Hutchinson, Wichita, Salina, Topeka, and Kansas City,  Kansas and then subsequently shipped by railroad to Texas  Gulf of Mexico ports for export or to livestock feed  locations in other states. While a large number of studies  have been written on the economics of ethanol, very few  studies have examined the impacts of increased ethanol  production on regional agricultural transportation markets.  The main objective and motivation of this paper is to  contribute to this small but growing literature and in the  process to indicate a useful methodology that can be used  by researchers in other states. The specific objectives of  the paper are: A. Investigate the transportation impact of  Kansas ethanol production from the point of view of the  Kansas ethanol production industry, the grain elevator  industry, and the railroads serving Kansas. B. Investigate  the impact of incremental truck traffic on state and county  road conditions in the vicinity of Kansas ethanol plants.},
      url = {http://ageconsearch.umn.edu/record/207239},
      doi = {https://doi.org/10.22004/ag.econ.207239},
}