Corn is Flying to New Heights

Sustainable aviation fuel could increase corn demand by billions of bushels annually.

Ethanol blended with gasoline for on-road vehicles has played a huge part in shaping the corn industry for the last two decades. Just this year, ethanol production used 4.42 billion bushels and accounted for 27.2% of total corn demand. As corn farmers continue to produce more on their acres, new sources of demand are needed to match the growing supply. One of those new sources of demand the National Corn Growers Association is pursuing is sustainable aviation fuel (SAF). American corn, processed into ethanol can help airplanes take to the skies.

Why does sustainable aviation fuel matter?

Sustainable aviation fuel opens a world of opportunity to increase corn demand. It would take 1.7 billion bushels of corn to fuel just 10% of global aviation needs. The aviation sector continues to prioritize greenhouse gas emission reduction. And it's not just airlines. Fuel producers, commercial customers, and governments are also rapidly searching for solutions. They need something scalable, commercially viable, and low-carbon - all of which SAF can provide. It's a win-win: low-carbon fuel for aviation and more corn demand for U.S. farmers.

Why is ethanol a good fit for SAF?

U.S. corn-based ethanol already has the pieces in place to support large-scale SAF production. From corn supply to production capacity, it is one of the most immediate and abundant domestic feedstocks on the market. And beyond production readiness, using homegrown fuel strengthens American energy security while creating substantial new demand for U.S. corn growers.

"As we see a steady decline in on-road consumption of ethanol, we need to continually look for new ways to utilize corn," said Sean Arians, vice president of sustainable production & value chain engagement at NCGA. "SAF provides a pathway for consumption of ethanol in the alcohol to jet pathway."

How is federal policy helping to produce SAF?

The Clean Fuel Production Tax Credit (45z) incentivizes ethanol manufacturers to produce SAF. The tax credit helps farmers make inroads into the aviation sector. Stable, long-term market incentives for ethanol producers provide farmers the chance to access reliable markets. This allows farmers to make capital, input, and management decisions that set up their operations to supply the SAF market for years to come while also adding certainty to their operation's future.

What still needs to happen?

NCGA is working to position U.S. corn up as the premier feedstock for SAF, including accurate accounting for life cycle/carbon intensity modeling, overcoming misconceptions about food supply vs. corn for feed, and evolving U.S. and international regulatory and policy strategy.

Like other industries, such as maritime fuels, the frameworks most often used to account for carbon intensity do not fully recognize the vast improvements farmers have made in sustainability and efficiency in recent decades. To change this, NCGA continues to advocate for federal SAF implementation guidance that properly accounts for improvements in corn production efficiencies on farms today, leveling the playing field for U.S. corn growers.

When looking at solutions surrounding U.S. and global regulatory processes and policy, NCGA is focused on favorable SAF investment policies, engagement in the International Civil Aviation Organization (ICAO), and mandates from the European Union.

• Favorable SAF investment policies like 45Z are a great start. NCGA supports policy and market-based incentives to lower the cost of finished fuel, encouraging airline uptake.

• Engagement in ICAO aims to ensure U.S. corn is an eligible feedstock for SAF. NCGA is calling for stronger engagement from the administration, including the United States Department of Agriculture, Department of Energy, Environmental Protection Agency, the Federal Aviation Administration and the State Department to ensure U.S. interests are represented.

• European Union SAF mandates will continue to heavily influence the SAF market. The current mandate does not allow for U.S. crop-based biofuels to be used in SAF. NCGA is working with U.S. policymakers to avoid discriminatory treatment of U.S. ethanol.

Bottom Line

"In order to grow demand, we must identify new opportunities. One promising market is sustainable aviation fuel," said Illinois farmer and NCGA Biofuels Action Team Chair Jon Rosenstiel. "Advocating for SAF now will help the future of corn farming beyond my generation, but we must start now in order for this demand to grow."

Learn more about other emerging markets in the report here and maritime fuels here.