Iowa’s corn and ethanol industry faces continued decline without immediate approval of nationwide, year-round sales of E15 gasoline and access to ultra-low carbon fuel markets, according to a new study released by Iowa Corn and the Iowa Renewable Fuels Association. The study comes as farmers confront a corn carryout exceeding 2 billion bushels and rising input costs for fertilizer, seed and machinery. It estimates corn prices at $1.52 per bushel, a level that could force some producers to downsize or leave farming without expanded demand.
Iowa remains the nation’s top corn producer and a leading ethanol state, with yields rising about 15% faster than the U.S. average, the study said. However, new markets are critical to sustaining growth. Iowa Corn Growers Association President Mark Mueller said passage of year-round E15 would help stabilize demand but is not enough long term. He said access to ultra-low carbon ethanol markets, including sustainable aviation and marine fuels, depends on investments such as carbon capture and sequestration pipelines. “Without new corn demand, Iowa could face a 1980s-style farm crisis,” Mueller said.
-NAFB