A USDA report has once again sent shockwaves through the corn market. Their prediction, a record-setting 188.8 bushels per acre, puts even more pressure on farmers already facing financial hardship and declining incomes. After all the hard work, all the input costs, and all the uncertainty, farmers are now staring down yet another hit to their bottom line.
This kind of volatility isn’t new, and the American Carbon Alliance has been shouting from the rooftops for a few years. But this trend is absolutely unacceptable. Year after year, American farmers do their part. They grow more with less, adopt new practices, and feed and fuel the world. But without strong, reliable demand, they’re left chasing markets that won’t sustain them.
We cannot afford to keep going through this cycle. If we continue doing the same thing over and over again, America will lose family farms, and rural economies will suffer. What we need are new markets and ideas that reward innovation and provide lasting stability. That’s why expanding the use of low-carbon fuels, like ethanol and sustainable aviation fuel (SAF), is more important than ever.
We all know that higher blends of low-carbon ethanol in our cars are a win for everyone, the consumer, the farmer, and our energy security. As with anything, you don’t put all your eggs in one basket. That’s why sustainable aviation fuel and other utilization of low carbon ethanol produced right here on our nation’s farms present such a critical opportunity.
This market is just getting started, and it needs policy certainty from Washington to ensure the United States owns this space, not China, Brazil, or some other global competitor. We can do both: higher ethanol blends in our cars and sustainable aviation fuels in our planes. The result? The U.S. and the American farmer in control of our energy future.
SAF is already being produced here in the U.S., and it’s one of the most promising ways to grow long-term demand for corn. By pairing ethanol with carbon capture technologies, we can produce a drop-in jet fuel that meets strict sustainability standards and creates real opportunity for rural America. This opens new markets for farmers’ crops, expands production opportunities for ethanol facilities, and lifts rural economies.
And we need to acknowledge what’s changed. The old way of hoping Mother Nature balances supply and demand doesn’t hold sway anymore. Today’s corn hybrids withstand drought, disease, and pests better every year. And the old model of simply exporting more raw commodities is no longer a guarantee. Countries like Brazil and Argentina are catching up in scale, acreage, and output. That’s why a new path forward, one that builds domestic demand, is essential.
Congress has taken steps in the right direction with the 45Z tax credit. But now’s the time to protect that policy, build the infrastructure, and give producers the confidence that these markets are here to stay. No more whiplash. No more wondering what the next report will bring. It’s time to grow the demand side of the equation, and that means investing in low-carbon fuels, expanding SAF, supporting carbon capture and sequestration innovation, and making sure the future of agriculture isn’t left up to chance.
Tom Buis is CEO of the American Carbon Alliance.
This article originally appeared on Des Moines Register: Enough whiplash: Farmers deserve stable, growing markets, including SAF | Opinion
Reporting by Tom Buis / Des Moines Register
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