New Economic Analysis Shows Solutions to Maintain Iowa’s Corn and Ethanol Industry

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.” 

To ensure long-term profitability, we must deploy the technology to unlock the potential of ultra-low carbon ethanol—specifically through carbon capture and sequestration (CCS) pipelines. This infrastructure is the ‘missing link’ that allows us to capture emissions at the source, drastically lowering the carbon intensity of our fuel and providing the verifiable data required to participate in high-value global markets. Four of the top five export markets for U.S. ethanol—the EU, the UK, Canada, and Colombia— already have low-carbon fuel policies to help them meet their decarbonization goals.  

Without the immediate adoption of nationwide E15 to stabilize domestic demand, and the critical infrastructure of a CCS pipeline to unlock global low-carbon markets, Iowa’s economic engine will stall. When our farms struggle, our energy independence weakens, fuel prices rise for every family, and we hand the lead in the global green energy race to our competitors. We have the resources, technology and soil to power the world with ethanol. To let this opportunity slip away is a risk our Iowa cannot afford.  

“Without new corn demand, Iowa could be faced with a 1980s farm crisis,” said Mueller.  

It’s time to authorize nationwide E15 and secure Iowa’s position as the global leader in corn and ethanol production. 

For More Information:

Sydney Garrett, Public Relations Manager, sgarrett@iowacorn.org, 515-225-9242