Federal policy developments affect corn farmers
Last week was a busy one in the world of corn, with key policy developments that impact corn farmers and demand for corn and corn products.
The U.S. Environmental Protection Agency (EPA) proposed biofuel blending requirements for 2023, 2024, and 2025. Meanwhile, a bill that would ensure permanent uninterrupted access to Unleaded 88 — also known as E15 — was introduced by Minnesota Sen. Amy Klobuchar (D) and Nebraska Sen. Deb Fischer (R). The bipartisan bill, called the Consumer and Fuel Retailer Choice Act, has 13 co-sponsors, including Minnesota Sen. Tina Smith (D).
Also in Congress, legislation that heads off a potential rail strike was passed. It was estimated that a rail stoppage would have resulted in $2 billion of lost economic output per day. In addition to major disruptions in the transport of grain, farmers would have had trouble securing fertilizer and other important crop inputs. Avoiding a rail strike was also a win for the ethanol sector, where 70% of all ethanol and 30% of all dried distillers grains are transported by rail.
Internationally, U.S. Agriculture Secretary Tom Vilsack met with Mexican President Andrés Manuel López Obrador to discuss a looming decree on imports of biotech corn. The administration needs to keep prioritizing and working on this issue because this would have a significant impact on corn farmers. In Minnesota alone, corn and corn exports are responsible for more than 8,000 jobs and contribute $478.8 million in gross state product.
The Minnesota Corn Growers Association (MCGA) is pleased with these developments. The EPA announcement will help ensure that drivers have a continued supply of homegrown, renewable, ethanol-blended fuels, which reduce greenhouse gas emissions and cost at the pump. The Consumer and Fuel Retailer Choice Act would remove an arcane barrier on summertime sales of Unleaded 88 that has nothing to do with the safety or quality of the fuel.
Meanwhile, the bill heading off the rail strike ensures there won’t be an interruption to this vital form of transportation. And Vilsack’s outreach to Mexico was an important step toward the potential overturning of the proposed Mexican biotech corn ban, which would hurt Minnesota farmers, impact thousands of jobs in the state, and land a blow to our economic well-being.
“MCGA is glad that Congress and the administration are taking these steps to ensure consumer choice and market stability for farmers and all citizens,” MCGA President Richard Syverson said. “We’re hopeful that we’ll continue to have uninterrupted market access for ethanol-blended fuels and biotech corn, and that rail transportation will continue smoothly.”
