NCGA Analysis Confirms Positive Benefits of E15 for Corn and Soybean Farmers

As legislation to authorize year-round E15 now heads to the U.S. Senate for consideration, the National Corn Growers Association today released an analysis demonstrating a net positive benefit of year-round E15 for corn and soybean farmers.

"For corn farmers, most of whom also grow soybeans, the overall impact is positive," the study explains. "On average, a representative farm with equal corn and soybean acres realizes a net benefit exceeding $5 per acre over the projection period."

Using a model developed by World Agricultural Economic and Environmental Services for NCGA, the study finds expanded E15 use, when accounting for updated Renewable Fuel Standard volumes and industry market assumptions for E15 adoption:

• boosts corn demand
• positively supports corn prices
• reduces net corn and soybean ARC/PLC outlays; and,
• increases the sum of overall net returns across the two crops

"At a time when farmers are facing tight margins, allowing year-round, nationwide E15 stands out as a market-driven solution that strengthens rural economies and delivers savings to taxpayers," the study noted.

Read the analysis here.