We may briefly accomplish the unimaginable: A new market for corn that knows no boundaries. It is projected by economists that corn prices are going to average $2.35 in the coming marketing year and as high as $2.85 in the year following. You can lock in $3.30 per bushel for 2008 right now on the Chicago Board of Trade. Could we return to the crop rotation of the 1970s: corn, soybeans and Florida? Is it good news for all farmers or will the livestock sector be penalized as grain prices go higher?

This potential price surge has been generated by the demand for ethanol. The alignment of the stars is such that oil is selling at record levels and the petroleum refining industry is driving the entire upsurge in ethanol demand. There can't be a faster building phase than is going on right now in bringing new ethanol plants online. We have the "plant of the week" in Iowa where investors can put up their money and every one seems to draw enough capital to build a refinery that goes into production about a year later. Returns are in the high double digits for investors in those plants that are operating today.

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