MARKET DEVELOPMENT
CREATING NEW MARKET DEMAND WITH VIETNAM
With over 97% of the world’s population living outside the United States, remaining active in the global market is critical to corn farmers’ bottom line. The best way to continue to develop international markets is by creating relationships and trust between farmers and our global customers. Through hosting trade teams and participating in trade missions, Iowa Corn is developing important trade relationships as these customers and decision makers are offered a firsthand experience to meet with Iowa farmers and understand how corn is grown and moved from our farms to their countries. One recent success story comes from the relationship with Vietnam.
Vietnam could be a big market for U.S. ethanol, representing 95 million gallons annually at a 5% level and nearly 200 million gallons at a 10% level. Today, there is a mandate in place to blend 5% ethanol, but current difficulties with their E5 RON92 means that policy is not being enforced. The good news is Vietnam has expressed a willingness to consider ethanol as part of its plan to decarbonize by 2050 by dropping the tariff on imported ethanol from 20% to 10%. The potential exists, and Iowa is well-positioned to take advantage of this.
Iowa Corn, in partnership with the U.S. Grains Council (USGC), has pushed to strengthen relationships with government stakeholders in Vietnam. Through this opportunity Iowa Corn showcased how Iowa has established an effective ethanol policy, how the ethanol industry has met those policy goals and how fuel quality and standards, infrastructure, human health/ environmental and consumer acceptance have happened here in Iowa and the U.S.
Last fall, Iowa Corn representatives Wayne Humphreys, a farmer from Louisa County, and Ryan Sauer, Iowa Corn Vice President of Market Development, traveled to Vietnam for a trade mission focused on building ethanol demand. During their time they met with top-level government officials to share the benefits of ethanol and support the USGC efforts to encourage Vietnam to use ethanol as part of their decarbonization strategy.
They also met with officials from the Ministry of Industry and Trade (MOIT), who ultimately will make the decision on
allowing ethanol utilization and are currently developing a roadmap to decarbonization. In addition, their delegation met with the Ministry of Finance to thank them for their reduction in the ethanol import tariff from 20% to 10% and encouraged them to continue to look for ways to reduce the tariff even further. During their visit, Vietnamese officials were personally invited to come to Iowa to see the first-hand benefits of U.S. ethanol and Iowa agriculture.
This June, Vietnamese officials took Iowa Corn up on its offer and sent a delegation of government representatives to Iowa. During their trade visit, they heard from Iowa officials including Governor Reynolds and Secretary Naig, toured ethanol facilities and corn farms, heard about the health and consumer benefits of ethanol and learned about fuel infrastructure, ethanol tax credits and current Iowa ethanol policy. Their time in Iowa was wrapped up by seeing the power and performance of ethanol live in action at the Iowa Corn 350 race at the Iowa Speedway.
These opportunities have had a positive impact on the path forward for ethanol in Vietnam. Since these meetings, the MOIT has asked the USGC to assist in the development and completion of this Biofuels Roadmap before the end of 2024. This also included the request to establish a working group to discuss the progress of the Vietnamese Biofuels Roadmap, which includes stakeholders who were on the trade team that was hosted in Iowa.
As Vietnam continues to develop its Biofuels Roadmap, the relationship and groundwork laid during this last year with Iowa Corn will be vital in positioning U.S. ethanol as the clean energy source for Vietnam. This potential could create a new and exciting market demand opportunity for Iowa’s corn farmers.
MAXIMIZING RESULTS WITH THE IOWA NITROGEN INITIATIVE
Every farm is different and requires different management practices, inputs and practices. The Iowa Corn Promotion Board (ICPB) invest the checkoff in projects such as the Iowa Nitrogen Initiative to ensure farmers have the best tools in their toolbox.
The Iowa Nitrogen Initiative (INI) is a public-private partnership with a vision to provide Iowa farmers with the best nitrogen science to benefit productivity, profitability and environmental performance. The initiative is funded by both public and private dollars, with the bulk of the funding coming from the Iowa legislature. Additionally, funding has been provided by partner organizations, including ICPB.
INI works alongside farmers and industry to coordinate hundreds of on-farm nitrogen rate trials across the state each year. The goal of these trials is to help provide data and better understand the interactions among genetics, weather, soil type and management, and how those impact cropping system outcomes to ultimately maximize efficiency for Iowa corn farmers. In 2023, INI had 270 on-farm trials in 148 fields, working with 72 different farming operations. More than 450 trials are in the works during 2024.
These were the key takeaways from the 2023 trials:
Yield at the Economic Optimum Nitrogen Rate averaged 229 bushels per acre (range from 173 – 271 bu/ac) in the 2023 INI N-trails. The Economic Optimum Nitrogen Rate varied from 100 to 301 pounds of N per acre. New to this year, we observed that the Economic Optimum Nitrogen Rate decreased from across the state’s Major Land Resource Areas east to west (see map).
• Nitrogen fertilizer application at the economic optimum rate can generate significant cost savings and environmental benefits. The agronomic optimum nitrogen rate was generally 20-60lbs N/acre greater than the economic optimum, but this extra N typically increased yield by only 2 bushels per acre.
• Farmers in Iowa Nitrogen Initiative trials averaged 0.83 lbs N / bushel of corn. More information on this measure of nitrogen use efficiency is available in a new Iowa State University Extension publication, “Pounds of Nitrogen per Bushel of Corn- Benchmarking Farms Against Local Averages.”
“The INI is a dynamic program that, with close collaboration among farmers and scientists, will generate management information to ensure that Iowa remains a global leader in the efficiency of production,” said Dr. Mike Castellano, Iowa State University Professor of Soil Science and Director of the Iowa Nitrogen Initiative. “By placing multiple nitrogen rate trials with farmers under real-world conditions, we are able to study and measure corn performance under numerous soil types, weather conditions and nitrogen rates.”
Last year, Iowa Corn sponsored four INI field days and several Iowa Corn farmer leaders participated in the project with their own on-farm trials. This September, Iowa Corn will be sponsoring another field day at Bloomsbury Farms in Benton County.
As one of the biggest input expenses for a corn crop, improving nitrogen fertilizer use continues to be a priority for Iowa farmers. The Iowa Nitrogen Initiative continues to develop recommendations for the efficiency and sustainability of nitrogen use in corn production, benefiting both Iowa corn farmers and the environment.
Learn more about the Iowa Nitrogen Initiative and how to get involved at www.agron.iastate.edu/portfolio/iowa-nitrogeninitiative/.
Scan to Read More:
IOWA CORN 350 POWERED BY ETHANOL
EDUCATION
The Iowa Corn Promotion Board (ICPB) has a mission to create opportunities for the long-term profitability of Iowa’s corn farmers. Each year in the ICGA member surveys, Iowa corn farmers continue to rank increased demand for ethanol and promotion to consumers as a high priority.
As the title partner of the Iowa Corn 350, Powered by Ethanol — Iowa’s inaugural NASCAR Cup Series Race — Iowa Corn was able to showcase the power and performance of ethanol on a national platform to millions of viewers.
During the June race, fans saw the high-performing Unleaded 88 in action, heard about ethanol as the most affordable renewable fuel option and were encouraged to experience the benefits themselves by fueling up with Unleaded 88 at the pump. Fans at the track and those tuning in were able to see cars racing around the Iowa Speedway that are powered by ethanol-blended fuel made with corn grown in Iowa, creating visibility and exposure for Iowa’s corn farmers.
“As a farmer, seeing NASCAR run on ethanol is proof that our hard work growing renewable crops can power something as thrilling as a race car, while also driving us towards a greener future,” said Stan Nelson, ICPB President and farmer from Middletown. “The Iowa Corn 350 provided us with the perfect opportunity to showcase our product on a national stage while also creating a great platform for us to get together with our members to celebrate all the hard work we do.”
The Iowa Corn VIP Membership tent at the Iowa Corn 350, brought together over 1,500 ICGA members to celebrate the inaugural and sold-out NASCAR race. During the pre-race activities, members heard from Rusty Wallace creator of the track, Austin Dillion NASCAR driver for Get Biofuels and more. Members also had the opportunity to enjoy an up close and personal experience on the track with the NASCAR fan walk.
Those who tuned into the race on NBC, streaming or digital platforms, were met with multiple Iowa Corn Pump It Up campaign video ads, showcasing and promoting fueling up with Unleaded 88. Throughout the race, the visibility of the Iowa Corn brand and conversations about corn and ethanol reached a large audience mostly outside of Iowa. The audience for the race was very strong — average viewership throughout the race was 2.7 million viewers with total viewers being about 4.28 million with over 94% of viewers being from outside of Iowa.
That week, NASCAR was ranked as the #1 sport watched on cable and the Iowa Corn 350 race was ranked as the most watched NASCAR Cup Series race on cable since July 2023.
The crowd at the race was full of energy. Fans were pumped for this inaugural race and over 25,000 seats were sold out in six days, with 59% of these attendees being first-time NASCAR attendees. Avid NASCAR fan sentiment remains positive with 85% wanting to see the NASCAR Cup Series race at Iowa Speedway again; this was the highest percentage among new tracks introduced to the NASCAR Cup Series since 2021.
The Iowa Corn 350 was a one-of-a-kind event that allowed the Iowa Corn brand and ethanol promotion to reach millions of consumers. The investment in the Iowa Corn 350 race had a strong return; for every $1 invested on the NASCAR race Iowa Corn received $21 in aggregated exposure value.
Iowa Corn was proud to be the entitlement partner of the firstever NASCAR Cup Series race in the state. The Iowa Corn 350, Powered by Ethanol, was a great success to showcase the power and performance of ethanol at the fastest short track on the planet, surrounded by Iowa corn fields.
#1 ranked sport watched on cable that week
4.28 million total viewers during race
invested $21 in aggregated exposure value was returned for every $1
1,500+ members joined at VIP tent to celebrate ROI: $21
94% of T.V. viewers were from outside Iowa
25,000+ seats grandstand tickets sold out in 6 days
CORNFIELDS TO CRAFT BEER
Located in West Union, Iowa, Folo Farms is operated by Loran Steinlage, a farmer with a deeprooted history in agriculture. Loran seeks new opportunities and markets for his corn and grains, all while emphasizing sustainable farming practices.
Loran began farming after high school, focusing on corn and livestock. However, Loran wanted to further diversify his operation and began growing corn and cereal grains to use in craft beer production. In 2006, Loran started planting cover crops to improve soil health and water quality on his farm. He also introduced relay cropping, which involves planting different crops at various times in the same field.
Despite these innovations, Loran found it difficult to compete in the traditional corn market and shifted the farm’s focus to growing soybeans and cereal grains.
A significant change came when Loran partnered with Pulpit Rock Brewing Company located in Decorah, Iowa. Pulpit Rock needed a reliable source of quality grains, and Loran began growing grains specifically for their beers. This partnership marked the beginning of Folo Farms’ involvement in the craft beer industry. Additionally, Loran discovered a valuable niche market for his corn, which was sold directly back into the community, further strengthening his connection to local consumers.
“Our relationship with Loran is crucial in our quest to make beers with high quality local ingredients,” shared Bob Slack, Brewmaster at Pulpit Rock Brewery. “We started our Dreaming of Fields Project years ago to try and highlight local growers, and Loran has been at the center of it. Couldn’t do it without him!”
Loran’s family—his wife Brenda and children Kelli, Kassi, and Rolan—are integral to the farm. While Loran dedicates his time to maintaining equipment, his children handle the day-to-day management of the farm. Loran is deeply committed to a direct-toconsumer approach, which he believes is essential for the future of agriculture.
He sees engaging with consumers and exploring niche markets as key strategies for success. Craft brewing, in particular, represents a unique local market where Loran’s farm can vividly showcase its products. By supplying grains and corn for craft beer, he can illustrate how the farm’s efforts translate into a final product enjoyed by consumers.
Recently, Iowa Corn reached out to Loran to join their partnership with the Iowa Brewers Guild and the Yield of Dreams project. Yield of Dreams is the delicious result of a collaborative effort between all Iowa Brewers Guild members. Each sip supports Iowa’s brewing industry and local communities. Iowa Corn supports this year’s Yield of Dreams beer because it’s crafted with Iowa-grown corn. Field Day Brewery located in North Liberty,
Iowa is creating the corn-based lager that will be sold at the Iowa Craft Beer tent at the 2024 Iowa State Fair and sold statewide starting August 19. Learn more using the QR code.
Loran has been an active member of Iowa Corn Growers Association for a number of years. He shared that one of his favorite moments was seeing bikers from across the nation walk through the Iowa Corn trailer, parked right in his field, the same field that today is producing corn for this beer. Loran takes great pride in helping consumers learn and understand the practices they are implementing on the farm by sharing his farming story.
Looking ahead, Folo Farms aims to continue producing high-quality corn and specialty grains through
sustainable farming practices. The Steinlage family is dedicated to maintaining the farm’s legacy and exploring new opportunities in agriculture and brewing for years to come.
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.
TO UNLOCK THE POTENTIAL OF CORN TO SUSTAINABLY MEET THE NEEDS OF A GROWING WORLD