Raising Economic Standards

Our balance of trade is made better by our ability to grow corn—and add value to it right here at home.

Every time we can create—and add value to—our own products, we help close the gap on the U.S. trade deficit.

Corn is doing its part—and more.

Cornfields are America’s equivalent of the Middle East’s oil fields—a vast, renewable resource that is transforming the fundamental component in industrial products. Instead of hydrocarbons, we’re using carbohydrates.

Ethanol plants are essentially “green” bio-factories —transforming corn into clean-burning fuel and high-value livestock feed. Now we’re looking at the next stage—the new generation of co-products from corn and ethanol production such as nutraceuticals, enzymes and pharmaceuticals.

These new enterprises will likely spring up where the raw material (corn) is readily available. That means even greater economic activity in rural America—and the ability for corn producers to invest in value-added industries. That leads to less dependence on government support for agriculture.

With rising oil prices, we have seen a dramatic and accelerated shift toward corn-based plastics such as PLA (polylactic acid). Suddenly, these biodegradable plastics have become even more economically viable compared to petroleumbased versions—to the point at which Wal-Mart has started using PLA clamshell food containers, calling cards and gift cards.

Due to strict environmental regulations, Japan is one of the largest global customers for PLA, which is manufactured only in the United States.

Nations such as Brazil and Argentina are rapidly becoming major competitors in global commodity agriculture. If the United States is to maintain its leadership role—and the economic benefit that comes with it—we cannot be content with simply growing corn. We must continue to find new and innovative ways to transform it into value-added products that the world is willing to pay for.