NCGA Calls for Increased Demand for Ethanol During Congressional Testimony

The nation's corn growers would benefit from increasing and creating new domestic demand for ethanol, Ohio farmer and National Corn Growers Association President Jed Bower said today during testimony before the Senate Agriculture Committee hearing on increasing domestic consumption of U.S agricultural products.

During his testimony, Bower zeroed in on expanding consumer access to fuels with 15% ethanol blends, often called E15. Thanks to an obsolete clause in the Clean Air Act, the sale of E15 is prohibited during the summer months unless the Environmental Protection Agency issues a waiver.

"Year-round access to E15 is critical," Bower told the committee. "Aside from the economic boost it would provide to farmers, year-round E15 would lead to significant savings for American consumers and strengthen U.S. energy dominance at a time when geopolitics are increasingly complicating markets and supply chains."

Grower leaders have pushed hard for passage of E15 legislation, but despite several promising opportunities, attempts to pass the legislation have fallen short.

Beyond maintaining current markets, corn growers must look toward the future and new opportunities for biofuels to expand further into the transportation sector, Bower told the committee. Corn growers continue to argue that properly implementing the 45Z tax credit is essential for agriculture to make inroads to the aviation sector.

"Corn-based ethanol can play a major role as a feedstock for producing aviation fuel," Bower said. "The 45Z tax credit, which Congress wisely extended in the One Big Beautiful Bill Act, is poised to help stimulate expansion of this rising industry."

Bower also noted that corn growers are actively exploring an emerging opportunity for ethanol in marine fuel.

"Potentially reaching volumes of over four billion gallons within the next five years, the marine fuel market symbolizes an unprecedented opportunity for American corn farmers and the crops we produce."

Bower also noted the importance of using corn in biobased products -- such as fibers, polymers, plastics and chemicals - which not only creates an economic opportunity for farmers, but also presents a more environmentally sustainable alternative for ingredients in many products that Americans use in their everyday lives.

He noted, for example, that capturing just 10% of the plastics market with biobased alternatives could generate demand for an additional 15 billion bushels of corn.

The hearing comes as corn growers are experiencing a fourth consecutive year of financial losses. To make matters worse, input costs for fertilizers and crop protections are high and rising.

Read the Submitted Testimony