The Effects of Expanding Ethanol Markets On Ethanol Production Feed Markets And the Iowa Economy, June 30 2001

Report produced by Iowa Departmment of Agriculture and Land Stewardship

Investigation into the Department of Natural Resources' Investigation of Asian Markets in Polk County, August 2004

Investigative report produced by Iowa Citizens' Aide/Ombudsman

The Outlook for Asian Dairy Markets: The Role of Demographics, Income, and Prices, June 2005

The paper first presents a 10-year outlook for major Asian dairy markets (China, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Thailand, and Vietnam) based on a world dairy model. Then, using Heien and Wessells’s technique, dairy product consumption growth is decomposed into contributions generated by income growth, population growth, price change, and urbanization and these contributions are quantified. Using the world dairy model, the paper also analyzes the impacts of alternative assumptions of higher income levels and technology development in Asia on Asian dairy consumptions and world dairy prices. The outlook projects that Asian dairy consumption will continue to grow strongly in the next decade. The consumption decomposition suggests that the growth would be mostly driven by income and population growth and, as a result, would raise world dairy prices. The simulation results show that technology improvement in Asian countries would dampen world dairy prices and meanwhile boost domestic dairy consumption.

Multilateral Trade and Agricultural Policy Reforms in Sugar Markets, September 2005

We analyze the impact of trade liberalization, removal of production subsidies, and elimination of consumption distortions in world sugar markets using a partial-equilibrium international sugar model calibrated on 2002 market data and current policies. The removal of trade distortions alone induces a 27% price increase while the removal of all trade and production distortions induces a 48% increase by 2011/12 relative to the baseline. Aggregate trade expands moderately, but location of production and trade patterns change substantially. Protectionist OECD countries (the EU, Japan, the US) experience an import expansion or export reduction and significant contraction in production in unfettered markets. Competitive producers in both OECD countries (Australia) and non-OECD countries (Brazil, Cuba), and even some protected producers (Indonesia, Turkey), expand production when all distortions are removed. Consumption distortions have marginal impacts on world markets and location of production. We discuss the significance of these results in the context of mounting pressures to increase market access in highly protected OECD countries and the impact on non-OECD countries.

Dairy Markets in Asia: An Overview of Recent Findings and Implications, September 2005

This paper is an overview of important findings regarding the ongoing evolution of Asian dairy markets based on a series of new economic investigations. These investigations provide systematic empirical foundations for assessing Asian dairy markets with their new consumption patterns, changing industries, and trade prospects under different domestic and trade policy regimes. The findings are drawn from four case studies (China, India, Japan, and Korea), as well as a prospective analysis of future regional patterns of consumption and a policy analysis of trade liberalization of Asian dairy markets. The overview distills the findings of these new investigations and integrates them in the earlier economic literature; it draws policy implications and identifies lessons for countries outside of Asia, especially for emerging exporters in Latin America.

Evalution of Hot Mix Asphalt Moisture Sensitivity Using the Nottingham Asphalt Test Equipment, July 2005

Moisture sensitivity of Hot Mix Asphalt (HMA) mixtures, generally called stripping, is a major form of distress in asphalt concrete pavement. It is characterized by the loss of adhesive bond between the asphalt binder and the aggregate (a failure of the bonding of the binder to the aggregate) or by a softening of the cohesive bonds within the asphalt binder (a failure within the binder itself), both of which are due to the action of loading under traffic in the presence of moisture. The evaluation of HMA moisture sensitivity has been divided into two categories: visual inspection test and mechanical test. However, most of them have been developed in pre-Superpave mix design. This research was undertaken to develop a protocol for evaluating the moisture sensitivity potential of HMA mixtures using the Nottingham Asphalt Tester (NAT). The mechanisms of HMA moisture sensitivity were reviewed and the test protocols using the NAT were developed. Different types of blends as moisture-sensitive groups and non-moisture-sensitive groups were used to evaluate the potential of the proposed test. The test results were analyzed with three parameters based on performance character: the retained flow number depending on critical permanent deformation failure (RFNP), the retained flow number depending on cohesion failure (RFNC), and energy ratio (ER). Analysis based on energy ratio of elastic strain (EREE ) at flow number of cohesion failure (FNC) has higher potential to evaluate the HMA moisture sensitivity than other parameters. If the measurement error in data-acquisition process is removed, analyses based on RFNP and RFNC would also have high potential to evaluate the HMA moisture sensitivity. The vacuum pressure saturation used in AASHTO T 283 and proposed test has a risk to damage specimen before the load applying.

Optimal Design of Permit Markets with an Ex Ante Pollution Target, August 2006

In this paper, we examine the design of permit trading programs when the objective is to minimize the cost of achieving an ex ante pollution target, that is, one that is defined in expectation rather than an ex post deterministic value. We consider two potential sources of uncertainty, the presence of either of which can make our model appropriate: incomplete information on abatement costs and uncertain delivery coefficients. In such a setting, we find three distinct features that depart from the well-established results on permit trading: (1) the regulator’s information on firms’ abatement costs can matter; (2) the optimal permit cap is not necessarily equal to the ex ante pollution target; and (3) the optimal trading ratio is not necessarily equal to the delivery coefficient even when it is known with certainty. Intuitively, since the regulator is only required to meet a pollution target on average, she can set the trading ratio and total permit cap such that there will be more pollution when abatement costs are high and less pollution when abatement costs are low. Information on firms’ abatement costs is important in order for the regulator to induce the optimal alignment between pollution level and abatement costs.

An Analysis of the Link between Ethanol, Energy, and Crop Markets, November 2006

This study analyzes the impact of price shocks in three input and output markets critical to ethanol: gasoline, corn, and sugar. We investigate the impact of these shocks on ethanol and related agricultural markets in the United States and Brazil. We find that the composition of a country’s vehicle fleet determines the direction of the response of ethanol consumption to changes in the gasoline price. We also find that a change in feedstock costs affects the profitability of ethanol producers and the domestic ethanol price. In Brazil, where two commodities compete for sugarcane, changes in the sugar market affect the competing ethanol market.

Emerging Biofuels: Outlook of Effects on U.S. Grain, Oilseed, and Livestock Markets, 2007

Projections of U.S. ethanol production and its impacts on planted acreage, crop prices, livestock production and prices, trade, and retail food costs are presented under the assumption that current tax credits and trade policies are maintained. The projections were made using a multi-product, multi-country deterministic partial equilibrium model. The impacts of higher oil prices, a drought combined with an ethanol mandate, and removal of land from the Conservation Reserve Program (CRP) relative to baseline projections are also presented. The results indicate that expanded U.S. ethanol production will cause long-run crop prices to increase. In response to higher feed costs, livestock farmgate prices will increase enough to cover the feed cost increases. Retail meat, egg, and dairy prices will also increase. If oil prices are permanently $10-per-barrel higher than assumed in the baseline projections, U.S. ethanol will expand significantly. The magnitude of the expansion will depend on the future makeup of the U.S. automobile fleet. If sufficient demand for E-85 from flex-fuel vehicles is available, corn-based ethanol production is projected to increase to over 30 billion gallons per year with the higher oil prices. The direct effect of higher feed costs is that U.S. food prices would increase by a minimum of 1.1% over baseline levels. Results of a model of a 1988-type drought combined with a large mandate for continued ethanol production show sharply higher crop prices, a drop in livestock production, and higher food prices. Corn exports would drop significantly, and feed costs would rise. Wheat feed use would rise sharply. Taking additional land out of the CRP would lower crop prices in the short run. But because long-run corn prices are determined by ethanol prices and not by corn acreage, the long-run impacts on commodity prices and food prices of a smaller CRP are modest. Cellulosic ethanol from switchgrass and biodiesel from soybeans do not become economically viable in the Corn Belt under any of the scenarios. This is so because high energy costs that increase the prices of biodiesel and switchgrass ethanol also increase the price of cornbased ethanol. So long as producers can choose between soybeans for biodiesel, switchgrass for ethanol, and corn for ethanol, they will choose to grow corn. Cellulosic ethanol from corn stover does not enter into any scenario because of the high cost of collecting and transporting corn stover over the large distances required to supply a commercial-sized ethanol facility.

Evaluation of Hot Mix Asphalt Moisture Sensitivity Using the Nottingham Asphalt Test Equipment, July 2005

Moisture sensitivity of Hot Mix Asphalt (HMA) mixtures, generally called stripping, is a major form of distress in asphalt concrete pavement. It is characterized by the loss of adhesive bond between the asphalt binder and the aggregate (a failure of the bonding of the binder to the aggregate) or by a softening of the cohesive bonds within the asphalt binder (a failure within the binder itself), both of which are due to the action of loading under traffic in the presence of moisture. The evaluation of HMA moisture sensitivity has been divided into two categories: visual inspection test and mechanical test. However, most of them have been developed in pre-Superpave mix design. This research was undertaken to develop a protocol for evaluating the moisture sensitivity potential of HMA mixtures using the Nottingham Asphalt Tester (NAT). The mechanisms of HMA moisture sensitivity were reviewed and the test protocols using the NAT were developed. Different types of blends as moisture-sensitive groups and non-moisture-sensitive groups were used to evaluate the potential of the proposed test. The test results were analyzed with three parameters based on performance character: the retained flow number depending on critical permanent deformation failure (RFNP), the retained flow number depending on cohesion failure (RFNC), and energy ratio (ER). Analysis based on energy ratio of elastic strain (EREE ) at flow number of cohesion failure (FNC) has higher potential to evaluate the HMA moisture sensitivity than other parameters. If the measurement error in data-acquisition process is removed, analyses based on RFNP and RFNC would also have high potential to evaluate the HMA moisture sensitivity. The vacuum pressure saturation used in AASHTO T 283 and proposed test has a risk to damage specimen before the load applying.

Iowa Power Fund Board Project Report Update, July 29, 2009

Amana Farms is using an anaerobic digestion, which is a two-stage digester that converts manure and other organic wastes into three valuable by-products: 1) Biogas – to fuel an engine/generator set to create electricity; 2) Biosolids - used as a livestock bedding material or as a soil amendment; 3) Liquid stream - will be applied as a low-odor fertilizer to growing crops. (see Business Plan appendix H) The methane biogas will be collected from the two stages of the anaerobic digestion vessel and used for fuel in the combined heat and power engine/generator sets. The engine/generator sets are natural gasfueled reciprocating engines modified to burn biogas. The electricity produced by the engine/generator sets will be used to offset on-farm power consumption and the excess power will be sold directly to Amana Society Service Company as a source of green power. The waste heat, in the form of hot water, will be collected from both the engine jacket liquid cooling system and from the engine exhaust (air) system. Approximately 30 to 60% of this waste heat will be used to heat the digester. The remaining waste heat will be used to heat other farm buildings and may provide heat for future use for drying corn or biosolids. The digester effluent will be pumped from the effluent pit at the end of the anaerobic digestion vessel to a manure solids separator. The mechanical manure separator will separate the effluent digested waste stream into solid and liquid fractions. The solids will be dewatered to approximately a 35% solid material. Some of the separated solids will be used by the farm for a livestock bedding replacement. The remaining separated solids may be sold to other farms for livestock bedding purposes or sold to after-markets, such as nurseries and composters for soil amendment material. The liquid from the manure separator, now with the majority of the large solids removed, will be pumped into the farm’s storage lagoon. A significant advantage of the effluent from the anaerobic digestion treatment process is that the viscosity of the effluent is such that the liquid effluent can now be pumped through an irrigation nozzle for field spreading.

Low Modulus Hot Pour Joint Sealant for ACC Pavements, HR-534, 1990

Over the years, the Iowa Department of Transportation has established an outstanding network of connector highways across the state of Iowa. Construction and paving of these primary roadways has essentially been completed. Unfortunately, many of these primary highway pavements are reaching their design life and are in need of rehabilitation. The emphasis, therefore, has shifted from the construction of new highways to the maintenance and rehabilitation of existing highways. The Iowa DOT in recent years has become more concerned with preventing the ingress of surface water into the pavement structure. Crack sealing is receiving greater emphasis. Specifications have been modified to require improved low modulus crack and joint sealing materials.

Effect of Density on Marshall Stability of Hot-Mix Asphaltic Concrete, MLR-82-01, 1982

The Iowa D.O.T. specifications do not require 100 percent of 50 blow Marshall density (generally 94%) for field compaction. However, stabilities are determined in the Laboratory on specimens compacted to 100 percent of Marshall density. The purpose of this study is to determine the stabilities of specimens compacted to various densities which are below 100 percent of the 50 blow Marshall density.

Evaluation of Hot Mix Asphalt Moisture Sensitivity Using the Nottingham Asphalt Test Equipment, TR-555, 2010

Pavements are subjected to different stresses during their design lives. A properly designed pavement will perform adequately during its design life, and the distresses will not exceed the allowable limits; however, there are several factors that can lead to premature pavement failure. One such factor is moisture sensitivity. AASHTO T 283 is the standard test used in the moisture susceptibility evaluation of asphalt mixtures, but the results of the test are not very representative of the expected behavior of asphalt mixtures. The dynamic modulus test measures a fundamental property of the mixture. The results of the dynamic modulus test can be used directly in the Mechanistic-Empirical Pavement Design Guide (MEPDG) and are considered a very good representation of the expected field performance of the mixture. Further research is still needed to study how the dynamic modulus results are affected by moisture. The flow number test was studied in previous research as a candidate test for moisture-susceptibility evaluation, but the results of that research were not favorable. This research has four main objectives. The first objective of this research is to evaluate the usefulness of the dynamic modulus and flow number tests in moisture-susceptibility evaluation. The second objective is to compare the results to those achieved using the AASHTO T 283 test. The third objective is to study the effect of different methods of sample conditioning and testing conditions. The fourth objective of the research is to study the variability in the test results.