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In the early 1980s, American agriculture faced a major crisis. Corn prices dropped below $2.00 per bushel, land and equipment values plummeted by up to 70%, and hundreds of thousands of farmers struggled to make ends meet. I witnessed firsthand the painful reality of this tragedy as several of my neighbors lost their livelihoods.
So, what was the cause of this difficult time?
Simply put, there was too much grain being grown in the world, and the markets weren’t large enough to utilize it. The ag crisis was a stark lesson in basic economics: when supply exceeds demand, prices fall. In the years that followed, crop prices stayed below the cost of production, threatening the very fabric of rural communities across the country.
A few years later, the introduction of bioethanol led to a vital new market that would fundamentally transform the future of agriculture. Bioethanol’s explosive growth over the next two decades not only solved the oversupply issue; it also created unprecedented new demand for ag commodities, produced a suite of valuable co-products, and brought agriculture back from the brink of collapse.
Today, 5.5 billion bushels of corn are processed annually in the U.S. alone to produce bioethanol — that’s 2.5 times more than we export. Bioethanol is the single most significant new demand driver for corn in history. On the other hand, exports — which seem to be the key talking point when oversupply occurs — have remained flat for over 20 years.
However, growth in the bioethanol industry has slowed significantly in recent years. Meanwhile, corn yields are increasing, exports are beginning to decline, and competition from other major ag-producing countries like Brazil and China is ramping up. These trends have put agriculture on the cusp of another crisis, bringing a new wave of economic distress that will impact every farmer in the U.S.
History has taught us there is only one solution: more bioethanol. Converting the nation to E15 (UNL 88) would utilize two billion bushels of additional corn each year, balancing supply and demand while also benefiting consumers with a cleaner, lower-cost, lower-carbon fuel.
The stakes are high, and it’s not just about farmers; it’s also about the millions of people whose lives depend on a thriving agricultural sector. The effects of another major ag crisis will devastate farm families and ripple through communities around the globe, including thousands of communities across the Midwestern U.S. that many of us call home.
It’s time for farmers, ag companies, rural stakeholders, and policymakers to join the fight for E15. Bioethanol holds the key to successful agriculture, and successful agriculture drives successful economies. America needs more bioethanol, not just as a solution for the impending ag crisis but as a pathway to economic viability and environmental sustainability.
It’s time for nationwide E15.
