S&P Says Biofuels Can Restore US Farm Profits as Crop Surpluses Swell

1 articles · Updated · Bloomberg · Jun 16

S&P Global Energy said expanding biofuel demand is critical to restoring profitability for US farms as rising harvests and weak demand threaten a sharp income drop.
Better technology is lifting crop yields and creating persistent surpluses, while demand has stagnated, a combination the study says will pressure prices and squeeze farmers.
The report warns that without stronger biofuel consumption, the imbalance would lead to reduced cropland and falling farm profits.
That view lands as US lawmakers consider broadening the market for corn-based ethanol, a step that could absorb more supply and support farm economics.