Speaking at the Cattle Industry Summer Conference in Denver, Colorado, Dan Basse, president of AgResource Consulting Group, said ethanol production "is here to stay".

He based this on a conversation with officials at the EPA, noting that EPA administrator Stephen Johnson is leaning toward not rolling back the ethanol mandate as requested by Texas Governor Rick Perry.

"I don't think you're going to get that (rollback) on July 25," he said, noting that Johnson's position is that the fuel supply that's being produced with ethanol is worth the corn costs that have occurred.

Mr Basse said this will put tremendous pressure on corn prices in the future because it's doubtful enough corn acres can be found and planted in the future.

And corn yields are not moving up off trend line rapidly enough to meet demand for corn.

"I'm reducing usage everywhere except ethanol," he said.

"This will keep corn over $6(/bu.) for years to come," he said.

But with crude oil prices at $US130 per barrel, corn prices will have to reach $8.25-8.50/bu before ethanol producers can't afford to refine the fuel, Basse said.

However, beef cattle and dairy producers attending the conference noted two presentations concerning the impact of ethanol production on industry profitability.

In the first presentation, Cal Dooley, chief executive officer and president of the Grocery Manufacturers of America, said that corn costs have increased 190pc since 2005, soybean costs have increased 180pc and wheat is up 174pc - increases that he said are among "the most rapid in history".

He also noted that food inflation is up 6pc this year and is projected to increase 7.5pc in 2008, a pace that's twice as fast as that of the general inflation.

Mr Dooley emphasised that the culprit "is not just ethanol" but includes a growing population around the world - with a growing middle class and an unprecedented demand for US commodities - energy, extreme weather and the weak US dollar.