May 13, 2025

Corn Growers Disappointed with Anti-Carbon Capture Legislation

Last night, the Iowa Senate passed the anti-pipeline bill (HF 639) with a vote of 27-22, effectively banning carbon capture and sequestration (CCS) projects within Iowa, including those that could achieve 100% voluntary easement. Stu Swanson, Iowa Corn Growers Association (ICGA) President and farmer from Galt, Iowa, released the following statement:

“This is a hit to Iowa corn growers and ethanol producers. The decision to ban carbon capture and sequestration projects cuts off our ability to tap into markets for ultra-low carbon ethanol and puts Iowa corn growers at a disadvantage compared to states pursuing CCS projects. Iowa has long been known as the corn state, and this decision impacts our ability to stay competitive as other states and countries seize this new opportunity. Our farmers deserve increased market access, not increased barriers. ICGA is disheartened by this decision but appreciates the support of Senate members who voted in the interest of the Iowa farmer.”

Additional Background:

Production of corn continues to outpace demand. USDA is estimating we will have 1.8 billion bushels of excess corn at the end of the 2025-26 crop year. If this bill is signed by the Governor, it would destroy the opportunity to pursue massive new ethanol markets like Sustainable Aviation Fuel (SAF). Worldwide jet fuel demand is projected to be at 120 billion gallons by 2035. If just 10% of that market could be made into SAF from ethanol, this would equate to nearly 19 billion gallons of new ethanol demand or nearly 6.5 billion bushels of new corn demand. That is more than 1.5 times the amount of corn grown in Iowa today.

Other states in the U.S. are implementing CCS technology. South American already has a significantly lower carbon score for corn ethanol and is also considering CCS to lower it further. The result of this will be these states and South America will become the market for low carbon ethanol. Iowa will no longer be the most competitive place to produce ethanol. Plants will be forced to stop expansion plans and ultimately will pay less for corn and that will mean less profitability for Iowa’s Corn farmers.

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