Record Corn Production Sparks Calls for Action

On Tuesday, the U.S. Department of Agriculture (USDA) forecasted that American farmers are set to produce a record-breaking 16.7 billion bushels of corn this fall. This startling announcement has sent ripples through the agricultural community, resulting in urgent calls for legislative and administrative action to boost demand for U.S. corn.

Response from Key Agricultural Associations

The USDA’s World Agricultural Supply and Demand Estimates (WASDE) and Crop Production reports have prompted various agricultural organizations to voice their concerns. Here’s a breakdown of the responses from prominent groups:

National Corn Growers Association (NCGA)

Established in 1957, the NCGA represents over 36,000 active corn growers across 48 states, advocating for the interests of more than 300,000 farmers through checkoff programs.

In response to the USDA report, NCGA President Kenneth Hartman Jr. emphasized the urgent need for congressional action to address what he termed a “dire situation.” He noted that the overwhelming corn supply, combined with persistently low prices, jeopardizes farmers’ livelihoods.

“Corn growers are already marketing their corn for extremely low prices. Without market-based solutions to increase demand, prices are expected to fall further,” Hartman stated.

He urged Congress to expedite the passage of pending E15 legislation, allowing for year-round access to higher ethanol blends, and called on the administration to facilitate the opening of new international markets for corn.

Renewable Fuels Association (RFA)

The RFA, established in 1981, represents the U.S. ethanol industry and highlighted the urgent need to eliminate regulatory barriers that limit market opportunities for both corn and ethanol.

Following the USDA announcement, RFA President and CEO Geoff Cooper articulated the concerns shared by many farmers in rural America. He underscored that this year’s crop is projected to be nearly 2 billion bushels larger than last year’s output.

“Alarm bells are ringing across rural America. Our nation’s farmers are doing their part by producing the largest corn crop in history, yet outdated policies are stifling demand,” Cooper asserted.

Cooper proposed that Congress should take decisive steps to promote higher blends of ethanol to boost corn demand and invigorate farming communities nationwide.

Growth Energy’s Perspective

As the largest biofuel trade association in the U.S., Growth Energy also chimed in, calling for the year-round availability of E15. According to CEO Emily Skor, the latest WASDE report underscores the immediate necessity for this policy change.

“E15 is a powerful economic engine that not only creates jobs and drives farm income but also offers savings to consumers,” Skor remarked.

She emphasized the importance of removing restrictions to make this affordable fuel option widely available, benefiting both farmers and consumers alike.

Conclusion

The USDA’s warning serves as a wake-up call for U.S. policymakers. As the corn crop continues to grow, it’s essential for Congress and the administration to act promptly to foster market conditions that benefit both farmers and consumers. The stakes are high, and with the right strategies in place, there’s potential for significant economic growth within the agricultural sector.