Iowa farmers continue to increase productivity, but new demand has not kept pace with that growth. According to a recent article by Dustin Hoffman with the Iowa Agribusiness Radio Network, Iowa Renewable Fuels Association Executive Director Monte Shaw says agriculture is once again facing a familiar challenge — producing more grain than existing markets can absorb. Speaking to members, Shaw said renewable fuels have played a major role in supporting farm income over the past two decades, particularly as E10 became the standard fuel nationwide.
However, he says that the market has now reached its limit while corn production continues to rise.
“So, you know, the good news is over the last 20 years, we made E10 the normal fuel, the standard fuel in the country. The bad news is that sometime around 2018, we actually saturated the E10 market. But our farmers never stopped being more productive. And that’s why we’re here today. Today, the supply of corn is growing at probably about three to four times faster than the domestic demand is growing for corn.”
Shaw says expanding renewable fuels and developing new markets offers the most sustainable path forward for farmers and rural communities.
Original story here: https://iowaagribusinessradionetwork.com/iowa-farmers-face-demand-gap-as-production-grows/
