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Abstract

The utilization of agricultural production to meet the nation's energy needs has emerged as a significant issue in public policy and legislative debate. One of the major types of programs being discussed are those encouraging gasohol production. The research evaluates the implications of alternative gasohol programs; for a large segment of the food and agricultural sector-corn and soybean producers consumers, and taxpayers. The impacts on corn and soybean prices, production, acreage planted, carryover stocks, exports, and commodity program expenditures are presented. The research findings indicate that alcohol production levels below 2.0 billion gallons do not result in serious dislocations in the agricultural sector. As the level of alcohol production increases and more grain is required, corn prices rise significantly, stocks fall to extremely low levels, exports decline, and government expenditures increase greatly.

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