Without immediate passage of nationwide, year-round E15 and access to ultra-low carbon ethanol markets, such as sustainable aviation fuel and marine fuel, Iowa’s corn and ethanol industry will continue its downward decline, according to a new study released by Iowa Corn and the Iowa Renewable Fuels Association.
Iowa’s corn farmers continue to lead the nation in corn production, and Iowa has long held the title of the most profitable place in the world to produce ethanol. With Iowa grown corn yields continuing to rise at a rate 15% faster than average corn yields across the U.S., it is imperative to Iowa’s agricultural economy that new markets are accessible for Iowa’s corn farmers.
The study’s release comes at a time when farmers are faced with a 2 billion bushel plus carryout and rising input costs for farm operations such as fertilizer, seed, machinery, etc. The study shows that corn prices are estimated at $1.52 per bushel by 2050; without access to expanded and new markets, many farmers may be forced to downsize or close their doors all together.
“Iowa corn farmers are struggling. Many of us don’t know what the future holds without access to new markets,” said Iowa Corn Growers Association President Mark Mueller, who farms in Waverly, Iowa. “The Corn Impact study is eye opening and provides solutions. Passage of year-round E15 will allow us to shrink the demand gap until we are able to access ultra-low carbon markets, but it isn’t enough to sustain long-term growth. Expanding into ultra-low carbon ethanol markets is essential for long-term viability but requires immediate state policy support to succeed.”