An ag economist says the need for government payments will keep growing if policymakers don’t support avenues for new corn demand.
Decision Innovation Solutions’ Chief Economist David Miller says corn production growth is expected to continue outpacing current demand without intervention.
“If we hold acreage and hold the industry together, but without new demand, we’re going to go to very low prices, which implies very huge government payments,” he says.
His analysis finds year-round E-15 could buy time to develop new markets with the marine and aviation sectors, and keep the industry afloat.
“We can move the corn market back into profitable levels, hold the market up around that $5 to $5.50 a bushel range,” he says.
Northeast Iowa farmer and president of the Iowa Corn Growers Association Mark Mueller says the current price environment has farmers fighting for their future.
“If I can’t get an operating loan or my banker decides to shut off the money, I’m in a world of hurt, and I’m not the only one out there,” he shares.
Executive Director of the Iowa Renewable Fuels Association Monte Shaw says passing year-round E-15 legislation could be the most important policy decision for farmers made this decade.
“It literally sets us up to move forward or to go into a very bad place, so we need to be doing everything we can to support our champions in D.C. right now,” he says. “It is now or never. There’s not another vehicle to move this bill this year, then there’s elections. I think we’ll be waiting years and years and years if we don’t get it done in the next few days.”
During a call with reporters on Wednesday, farm leaders called for immediate action to pass E-15 legislation and create a generational demand shift.
