A new white paper just released by The Context Network exposes the impacts of the government's Energy Independence and Security Act of 2007 (EISA) on agriculture over the next 14 years. Specifically, the report evaluates three time brackets within that 14-year period. It assesses whether requirements of the law could be met and appraises the actual impact in each time period and for specific feedstocks contributing to biofuel production.



EISA is an omnibus energy policy law that consists mainly of provisions designed to increase energy efficiency and the availability of new energy. EISA's Title II contains a new set of biofuels requirements that increases the amount to be utilized in the U.S. to 36 billion gallons by 2022, and goes on to describe what feedstocks will be utilized.



Context Network Senior Consultant Jim Murphy was principle author of this white paper. "Rather than simply assuming all provisions of EISA would be met, this report is based on our analysis of what volumes of different biofuels will actually be produced and the actual impact on corn, soybean oil, sorghum and cellulosic feedstock, demand, total acres, crop prices and the effect on net returns per acre."



He added, "Our analysis revealed some significant departures from conventional expectations regarding the availability of some resources to fulfill government projections." Murphy noted that corn starch based ethanol has more potential than some may think, but that biodiesel and cellulosic ethanol face considerable economic challenges". He said, "Cellulosic ethanol's future is very much dependent on continued high oil prices, future legislation on green house gases and technology development."



Context Network Partner, Tray Thomas added, "We're confident this report will provide significant value to all organizations with a stake in the biofuels industry including crop input suppliers, equipment manufacturers, biofuels producers and policy makers. The biofuels industry has already had a huge impact on agriculture and Context will continue to monitor it closely for our clients to separate (the sometimes) unbridled optimism from what is economically feasible."