A LOOK INSIDE:
MARKET DEVELOPMENT
Carbon Q&A with Iowa
Renewable Fuels Association
RESEARCH
The Defining Decade: Iowa NRS 10th Anniversary
EDUCATION Drive Clean Iowa
FARMER FEATURE
Bringing the Farm to You with Trailer Mike
ICPB DIRECTOR ELECTIONS
iowacorn.org
Iowa Renewable Fuels Association (IRFA) represents the state’s liquid renewable fuels industry, many of their members are farmer-owned ethanol plants. Recently IRFA conducted an economic impact study related to carbon capture and sequestration. Iowa Corn sat down with IRFA to learn more about the findings of this study and the impacts on Iowa’s corn farmers, the ethanol industry and Iowa’s economy as a whole.
Like any farmer or other business, ethanol producers need to stay economically competitive and in tune with their customers’ needs to be successful. Today the largest domestic and export markets for biofuels are moving to require energy providers to meet low-carbon metrics. Combining this with the recent passage of federal clean fuel tax credits, ethanol producers need to adapt if they want to stay relevant long-term. What worked a year ago, will not be competitive in three years.
Luckily for agriculture, we have something very few energy producers can provide, a product that can have a net negative carbon intensity. The single largest tool ethanol producers have to remain competitive is carbon capture and sequestration (CCS), which alone lowers a plant’s carbon intensity by roughly 50%. If Iowa ethanol plants are allowed to utilize CCS, they can easily compete in low-carbon markets – even against electric vehicles.
For Iowa corn growers, this means local ethanol plants will continue to process more than 60% of Iowa’s annual corn crop. Furthermore, this opens new opportunities for ethanol, such as sustainable aviation fuel (SAF) and ethanol replacing petroleum in chemical processes. Finally, IRFA is working with state and federal regulators to allow ethanol producers to recognize the low-carbon farming practices of their corn suppliers. While there has not been progress on this front to date, if this commonsense concept was adopted, it would allow us to reward corn suppliers for conservation practices like cover crops, nutrient management or no-till.
IRFA recently conducted a study with Iowa’s top ag economist with Decision Innovation Solutions and former long-time chief economist with Iowa Farm Bureau Federation, David Miller. The study found that if Iowa was left behind as other states move forward with CCS,
Iowa ethanol production would become noncompetitive, and the state could see ethanol production decline by 75%. The results are devastating:
Iowa ethanol production reduced by nearly 3.5 billion gallons per year
• Local demand for Iowa corn reduced by over 1 billion bushels per year
• Iowa ethanol plant revenues plunge by more than $10 billion per year
With the amount of corn leaving Iowa without value being added jumping from 6% to 44%, the impact on Iowa farm income is staggering.
• Local basis on corn will drop by up to 75 cents/bushel depending on the region of the state
• Profit on corn production will plummet 85% compared to the status quo
• Farm income will drop $43,000 per year for a typical 1000-acre farm split 50/50 between corn and soybeans
• $1.1 billion of farm income will be lost statewide
CCS will allow ethanol to compete long-term in the light-duty transportation sector for decades to come as domestic and international markets increasingly implement low-carbon metrics. Combined with additional technologies, CCS will help ethanol
maintain a lower carbon footprint than petroleum fuels and most electric vehicles.
However, the new and emerging future market opportunities are really exciting. The United States airline industry is projecting demand for SAF to reach 35 billion gallons annually by 2050. (Remember, current U.S. ethanol demand is between 15 and 16 billion gallons per year.) Also looking to decarbonize marine vessels and railroads represent other potentially massive market opportunities. In addition to new uses for ethanol, by aggregating and shipping commercial-scale quantities of pure CO2, CCS pipelines create the opportunity to create new high-value products from CO2. Over the next 10-15 years you could see brand new industries locate in Iowa to produce eMethane, green/blue hydrogen, biochemicals and bioproducts.
CCS capability is the lynch pin to unlocking a new economic revitalization of Iowa agriculture not unlike what occurred in the early 2000s as the ethanol industry expanded in Iowa. Iowa is poised to become a leading player in the new era of clean, renewable American energy and bioproducts, which would add value to Iowa’s corn crop, create thousands of new jobs and grow the Iowa economy.
IRFA is not a safety consultant. We don’t expect anyone to take our word on safety. But there is a great deal of misinformation being spread by anti-agriculture groups about these pipelines. We encourage people to ask questions and to look for credible sources of information.
Here are some facts: CO2 is neither flammable nor explosive. Most of the nearly 50,000 miles of pipelines in Iowa carry things like natural gas, propane, petroleum, gasoline and jet fuel which are flammable, explosive or both. Remember, most Iowa homes, schools and businesses have natural gas piped into them.
The CCS projects will be some of the most advanced pipelines ever constructed while going above and beyond current safety rules and
regulations set by the federal overseeing agency, the Pipeline and Hazardous Materials Safety Administration (PHMSA.) Furthermore, PHMSA, which has been regulating CO2 pipelines for over 40 years, considers CO2 pipelines very safe compared to natural gas, oil, propane pipelines or other forms of transportation like trucking or rail.
There are three pipeline projects in Iowa in varying stages of development and permitting. The project furthest along is expected to go before the Iowa Utilities Board by the end of 2023. Currently, they report over 70% of landowners have signed voluntary easements and that number goes up every week. Think about that, the people most impacted by these projects, who have done the most due diligence, have signed on board in overwhelming numbers.
Most IRFA members are farmer-owned ethanol plants. We understand the connection farmers feel with their land because we share it. If you are directly impacted by a project, we urge you to make a list of your questions and concerns and then sit down with the project representatives in good faith to get the information you need to make a decision. We’ll bet you can work something out.
We know that Iowans have different reactions to the notion of a low-carbon economy. IRFA is not asking folks to support one side or the other, but it is important for all Iowans to understand that ethanol plants want to adopt CCS because it is vital to their competitiveness. Whether you strongly agree or not, the markets that ethanol producers depend upon, both today and in the future, are demanding low-carbon solutions. We urge all Iowans to pull together to find a fair and equitable path forward for CCS because capturing and sequestering carbon will determine the future of Iowa’s ag economy.
Since 2 013, Iowa farmers have taken significant steps towards the goal of reducing nutrient losses through the Iowa Nutrient Reduction Strategy (NRS), and the effort is only gaining momentum. Science, technology and farmer-led initiatives are working together in pursuit of these objectives. The NRS is much bigger than a single decade, it’s a commitment to find solutions and make positive changes now and in the future. But the next decade will require more — and the innovation is available to make the change. The path forward in Iowa includes building on the growth of cover crops, nutrient management and reduced tillage, expanding the state’s nation-leading adoption of bioreactors and saturated buffers and establishing hundreds of new wetlands. In cities, wastewater treatment facilities are already meeting reduction targets for nitrogen and phosphorus. The numbers don’t lie - the NRS is making an impact, and it’s only going to get better. Here are some of the major successes farmers have seen over the last ten years.
• Major progress on phosphorus losses in the first decade puts Iowa near the NRS nonpoint goal of 29% reduction. The reduction rate stands at 27%.
• Iowa farmers have cut the number of pounds of nitrogen needed to produce a bushel of corn by 46% and 26% compared to 1980 and 2000, respectively.
• The past several years of momentum in edge-of-field practice adoption have demonstrated their effectiveness in decreasing nitrate and phosphorus losses.
• Conservation practices have grown by millions of acres.
• Cover crops were nearly nonexistent in Iowa a decade ago, but today about 3 million acres of cover crops are planted. The number was below 1 million acres as recently as 2016.
Cover crops, like cereal rye and oats, are proven to reduce nitrogen loads by 28-31% and phosphorus loads by 29%.
• Bioreactors and saturated buffers were invented in Iowa, and the state leads the nation in the adoption of these practices.
• Bioreactors and saturated buffers are being installed at the fastest rate since the NRS began. From 2008 to 2010 an average of nine of these edge-of-field practices were installed per year. In just the past two years alone, 129 of these edge-of-field practices were installed. In 2023 alone, about 150 outlets are ready to be treated with a saturated buffer or bioreactor.
“We have made great progress but there is more to be done,” shared Stu Swanson, Chair of the Iowa Corn Animal Ag and Environment Committee and farmer from Wright County. “The passage of the Nutrient Reduction Strategy in 2013 set a new direction for agriculture. We must continue to make improvements on our farms. Working together will make the next 10 years even more successful.”
Today, we’re poised to leverage the knowledge gained in the first ten years of implementing the NRS, our defining decade, to see significant results in the years ahead.
“My story started 10 years ago when I started implementing cover crops and no-till. I was one of three farmers nationwide enrolled in ‘high yield conservation’ projects. I had been a tillage guy my entire farming career until then. While I was not new to installing permanent conservation structures, cover crops were new to me. I started slow, first planting oats and radishes for the first three years then took a leap and planted cereal rye. Conservation is a mix of good permanent structures like my wetland, combined with cover crops and no-till, throw in edge-of-field practices and you have a winning combination.”
– Tim Recker, farmer from Arlington, IowaLast year, the ethanol industry had a huge win with the passage of the Iowa Biofuels Access Bill, which will lead to 70% of fuel retailers across Iowa having E15 available by 2026. While Iowa Corn continues to help support these retailers who will be selling E15, we found it vital to shift our focus to consumer education. For many approaching the pump, there is confusion about what is the best fuel for their vehicle. That’s why Iowa Corn has partnered with the Iowa Renewable Fuels Association (IRFA) to engage with consumers and share about fuel options through their Drive Clean Iowa campaign.
The Drive Clean Iowa campaign was created in 2022 by IRFA to encourage new drivers to fuel up their vehicles with UNL 88 to save money and save the planet while supporting local farmers. This campaign was launched across social media channels including Instagram, TikTok and Facebook, where it shares fun videos and infographics about the benefits of fueling up with UNL 88 and how drivers can make a better choice for their wallet, car and the environment.
“Drive Clean was developed to be a fun and engaging social media platform to help educate, encourage and empower young drivers to use UNL 88. We continue to work with youth organizations such as FFA and 4H, as well as driver’s education instructors to provide educational materials to help young drivers learn about the benefits of ethanol while saving them money, saving the planet and supporting local farming communities,” shared Lisa Coffelt, Marketing Director at IRFA. “Drive Clean continues to gain momentum and we are excited to see how this campaign will move the needle for the ethanol industry.”
The Drive Clean Iowa campaign focuses its efforts on converting high school students or new drivers to fuel up with UNL 88. This social media-driven campaign focuses on drivers from ages 12 to 18, a group that has a greater potential to change their fuel-buying habits early on. Through a focus group of young students, IRFA found that the use of messaging focused on cheaper fuel, better for the
environment and support of Iowa corn farmers registered well. This messaging has been the prime focus of their videos and social content developed for the campaign.
“Iowa Corn is excited to partner with IRFA on the Drive Clean campaign. By reaching this specific group of new drivers we can hopefully have a positive boost for E15 sales, resulting in more corn grind for Iowa corn farmers,” shared Dan Keitzer, a farmer from Des Moines County and Iowa Corn Industrial Usage and U.S. Production Committee Chair.
One tool that Iowa Corn and IRFA partnered together on has been driver’s education instructor kits. Five hundred of these kits have been prepared and are being shipped out to teachers across the state to encourage them to share the positive messages of UNL 88 with new drivers. Packets included a driver’s education class presentation, an educational video and an instructor starter kit that includes a Drive Clean shirt, marketing materials, UNL 88 key chains and information on how they can get more materials to share with their students.
Iowa Corn also recently invested to help boost the social media content of Drive Clean Iowa to the targeted audience. This boosting helps reach more consumers, with the great content already shared on their social platforms. Since boosting began Drive Clean Iowa’s TikTok has seen an increase in all areas including video views, profile views and engagement. Video views reached over a combined 53,000, an increase of 196%. Instagram viewership also increased by 187% since boosting. The Drive Clean Iowa campaign has been a great way to connect with the next generation of Iowa drivers. By being the first source of information when it comes to how to fuel their vehicles, these drivers will be more likely to continue to use E15/ UNL 88 for years to come. Iowa Corn looks forward to continuing to work together with the Iowa Renewable Fuels Association to promote UNL 88 as the best fuel choice through Drive Clean Iowa.
In 2016 the Grassroots Network Membership and Checkoff Committee at Iowa Corn created the tool of the Iowa Corn Mobile Education Unit also known as the Iowa Corn Trailer. Since then, the trailer has been traveling to events across the state reaching thousands of Iowans through county fairs, field days, RAGBRAI, the Iowa State Fair, schools and more. One familiar face often accompanying the trailer is Mike Finarty or as many have come to know him, Trailer Mike.
Growing up in the 80s during the farm crisis, Mike’s father never wanted him to stay in agriculture. However, his passion for the industry and supporting farmers always remained. Mike decided to go to Iowa State and study biology and environmental science. Later, he was given the opportunity to take over his family farm and since has been actively farming just south of Knoxville, Iowa.
In 2013, two of Mike’s neighbors, who were teachers and helped with the biofuels trailer (which Iowa Corn is a partner with biofuels plants), asked Mike if he would like to help out. He figured it was a great way to get involved and share about agriculture with a population that over 99% are no longer involved with farming. Mike has continued to work with the biofuels trailer and also started traveling with the Iowa Corn Trailer since its inception in 2016.
“Farmers are busy and are not always able to get off the farm to share their own stories,” shared Mike. “The Iowa Corn Trailer provides the opportunity to take the farm to consumers.”
As Iowans have experienced the trailer, word has spread about the great tool and educational
opportunity the Iowa Corn Trailer provides. Recently, the trailer has been traveling to several schools as it is a great resource to help teachers and FFA advisors complement their curriculum and give students the ability to learn about agriculture and ask a real farmer questions. The Iowa Corn Trailer has allowed teachers to have a field trip-like experience for their students without the added work and hassle of traveling somewhere.
The impact of the trailer remains more important than ever as more consumers are disconnected from agriculture. To Mike, the Iowa Corn Trailer is one of the best ways to show consumers why farmers do what they do and how the corn industry has become more sustainable and efficient over the years. He shares that most consumers are fascinated by finding out how corn affects their life on a daily basis, from the products that they wear and consume to the clean water that they drink, corn farmers play an important role in it all.
“This trailer helps to educate so many consumers and it takes so much more than just me for it to be a success,” explained Mike. “From the District Field Managers who have local connections across the state to coordinate a lot of the events, to the communications team and other departments at Iowa Corn who put together the messaging and the other educators that help facilitate and run the trailer throughout the year, the success of this trailer really is a group effort to share about the world of corn and farmers.”
As the Iowa Corn Trailer rolls out for a busy summer in 2023, make sure you stop in to chat with Mike and also see the newly updated inside information and videos.
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Farmers are busy and are not always able to get off the farm to share their own stories. The Iowa Corn Trailer provides the opportunity to take the farm to consumers.Find the Iowa Corn Trailer at these events and more this summer:
At Iowa Corn, we do many things. We develop and defend markets for corn across the globe. We fund research that unearths new uses for corn. And we spearhead education and promotional efforts to communicate the many benefits and uses of corn and corn products. Why do we do what we do? Because we believe in the corn growers of Iowa. What corn farmers do impacts people worldwide, and it’s our mission to support corn farmers’ interests. We’re here to work for the corn farmer. And we’re proud to do it.
ICPB di rector elections are quickly approaching. Crop reporting districts 1, 3,6 and 7 are up for election. To learn more about the election process, please contact Iowa Corn: 5505 NW 88th Street, Johnston, Iowa 50131 or 515-2259242. Visit iowacorn.org for further details and more information.
ICPB ELECTION TIMELINE:
July 11 E lections held at local county extension offices. Absentee ballots must be postmarked on or before July 11.
THE POTENTIAL OF CORN TO SUSTAINABLY MEET THE NEEDS OF A GROWING WORLD