Demand is the key to any success we have in the ag marketplace. Whether it is foreign or domestic demand, we need it to be able to generate a fair market value for the corn and soybeans we produce. This is even more apparent that we have generated a large amount of carryout for corn after 2023, and this is despite weather challenges across the entire Cornbelt. If we had a normal year, with less drought stress, we could be looking at even bigger numbers and lower prices.
This is why the ethanol industry has been pushing hard to be part of the future of sustainable aviation fuel (SAF). By having a larger market available, we can create more use for our corn. Monte Shaw is the Executive director of the Iowa Renewable Fuels Association, and he talks about the potential this market can bring. It all starts with his visit to the nation’s first ethanol-based SAF plant.
However, it isn’t as simple for ethanol plants to start producing SAF. They need to reach a lower carbon score to be even considered for the task. Shaw says that Iowa doesn’t have the means of sequestering carbon as this Georgia facility does. We have to be able to get carbon to the geological areas that are prime for carbon sequestration.
Shaw says that the pipelines that have been concerning for property owners are going to be the best way we have available to us to sequester the carbon if we want Iowa to be a leader in the SAF industry. As Shaw points out, we do not have enough of the geological prerequisites to capture our carbon.
Shaw points out that this SAF market could mean huge economic growth for the state of Iowa.
As Shaw points out the corn market is heading to a situation that could see producers losing more money per bushel on the corn we produce. He says that he understands that there are landowner concerns. He reiterates that he is a landowner too, but the concern is that if we don’t catch the boat on the SAF industry, we could be in a tougher situation for the corn market.
During the recent Iowa Renewable Fuels Summit, representatives of the airline industry made it abundantly clear that they want this product. They need SAF to lower their carbon emissions. They are going to get the technology and the source to get what they need somehow. The question is do Iowa farmers want to be a part of that solution and make money off of a potentially lucrative market, or do they want to sit on the sidelines and watch someone else benefit?
During the summit earlier this month, U.S. Agriculture Secretary Tom Vilsack noted that SAF is coming, because we will never be able to get completely away from a fuel source at present. Unlike EVs on land, airplanes can’t just pull over and recharge a battery. They are going to need something reliable, and ethanol has a chance to be a part of that.
