I have created a couple of Google Earth map overlays that will allow you to see where the ethanol plants are now and where they are planned.
If you already have Google Earth installed, you can open the overlay by
visiting the
Google Earth Community and downloading the overlay.
If not, you will need to install Google Earth first (available at http://earth.google.com).
As most know, there are a huge number of new ethanol plants that are being planned for Nebraska as well as some other corn belt states. I have created a Google Earth overlay that shows how many plants are in operation or are being planned for Nebraska. The icons are coded to indicate if plants are in production, under construction, or simply announced. They are also sized to indicate the size of the facility.
While many people worry that there will be a glut of ethanol plants, keep in mind that even if every bushel of corn in the nation were run through an ethanol plant, we will still produce less than 15% of the nations fuel needs.
There is enough corn production to meet the needs. If more corn is needed, more acres will shift from soybeans to corn.
In less than two years, Nebraska is projected from being a corn exporter to a corn importer. This will cause major changes in how the economy of Nebraska works. Foremost it will cause a change in where cattle are fed in the nation. There will be a shift from places like the panhandle of Texas to Kansas, Colorado, and western Nebraska. This change will add a significant amount of money to the economy. Cattle are a value added product which requires more labor.
Even though there is a large amount of corn in Iowa, Illinois, and Indiana, they have several things that make them less attractive as a place to raise cattle. The three I’s have a climate that is less favorable to weight gain. There are more people in the rural areas of the three I’s and as a result few places where feedlots can be placed. While the tax structure favors Texas, Nebraska will still gain from this change.
The only thing that threatens the entire ethanol shift is Nebraska water policy. Nebraska, on the Republican River Basin, must comply with an Interstate Compact Agreement. Nebraska is far out of compliance now and risks seeing a Federal judge take control of Nebraska water policy. This places about 1.2 million acres at risk of losing their access to water or seeing their access reduced by half.
Nebraska is also committed to removing 450,000 acres from irrigated production in the Platte River Basin or about 15% of the total Platte River irrigated acres.
EWhile many people worry that there will be a glut of ethanol plants, keep in mind that even if every bushel of corn in the nation were run through an ethanol plant, we will still produce less than 15% of the nations fuel needs.
There is enough corn production to meet the needs. If more corn is needed, more acres will shift from soybeans to corn.
In less than two years, Nebraska is projected from being a corn exporter to a corn importer. This will cause major changes in how the economy of Nebraska works. Foremost it will cause a change in where cattle are fed in the nation. There will be a shift from places like the panhandle of Texas to Kansas, Colorado, and western Nebraska. This change will add a significant amount of money to the economy. Cattle are a value added product which requires more labor.
Even though there is a large amount of corn in Iowa, Illinois, and Indiana, they have several things that make them less attractive as a place to raise cattle. The three I’s have a climate that is less favorable to weight gain. There are more people in the rural areas of the three I’s and as a result few places where feedlots can be placed. While the tax structure favors Texas, Nebraska will still gain from this change.
The only thing that threatens the entire ethanol shift is Nebraska water policy. Nebraska, on the Republican River Basin, must comply with an Interstate Compact Agreement. Nebraska is far out of compliance now and risks seeing a Federal judge take control of Nebraska water policy. This places about 1.2 million acres at risk of losing their access to water or seeing their access reduced by half.
Nebraska is also committed to removing 450,000 acres from irrigated production in the Platte River Basin or about 15% of the total Platte River irrigated acres.
Ethanol, cattle, corn, are all dependent on Nebraska water policy. Nebraska water policy is decided by the Governor, the Nebraska Attorney General’s office, The Department of Natural Resources and 23 local Natural Resource Districts. The election will play a large role in determining what Nebraska water policy will be and if the potential from ethanol is realized.