With the growth of ethanol plants in North America, plus Ontario's edict that 10 per cent of automobile fuel must be ethanol by the year 2009, the price of corn has begun to climb, and experts are predicting the trend will continue.

It's good news for corn producers, but not so good for feedlot operators nor, possibly, for cow-calf farmers, says Dundalk feedlot operator Dale Pallister.

According to Jim Irvine, manager of the co-op store at Grand Valley, corn as recently as September was fetching $117 a ton, and now it commands $141. "That's a dramatic increase," he said. For next year, "it's projected to be $148."

Mr. Irvine said the elevators last year were full of corn, and it couldn't be sold - not even to the ethanol plant at Chatham.

"Chatham can bring it in cheaper from the U.S.," he said. "But that's changing because of ethanol production."

It might change even more. Ontario now has two ethanol plants producing 400 million litres a year. Three more are planned - one of those for the Collingwood area.

In the U.S., the National Association of Corn Growers is quoted as saying prices have climbed 50 per cent since mid-September - an experience that virtually matches that of Ontario.

Mr. Pallister said "any time you see corn up 10 cents a bushel, that's $4 a ton. Since September, it's up by $40-$45 a ton (which translates into) a 15-20 cent cost per pound of weight gain."

This, he said, will have an impact on cow-calf operations. Unless the farm-gate price of finished cattle increases, "we have to buy replacement (calves). We either have to pay for feed or for cattle. That's not good news for the growers" (as they would normally make their money by growing the steers for the finishing process at the feedlot).

Although the prices might have an undesired effect on feedlot operators, Mr. Pallister said he doesn't begrudge the corn producers the rise in prices. "The $110 was no good for them either."

Last year's markets made it difficult for producers to seed in the spring. "If you went to the bank for a loan to plant corn, they looked at you like you were nuts," said Mr. Pallister.

And, at the University of Guelph, corn specialist Gregg Stewart said the overall Ontario acreage has declined to about 1.6 million acres from a previous 2 million. "I expect that to grow next year," he said.

Dufferin County producers usually seed about 7,600 acres. Mr. Stewart said production from the acreage in 2005 was "130 bushels per acre on 6,100 acres."

Mr. Irvine said local producers have experienced bumper crops for the past few years. His information on production was "four tons per acre."

General manager Ryan Brown of the Ontario Corn Producers in Guelph wasn't immediately available Wednesday.