In The News

Apr 8, 2024

Author: Krista Swanson

Motor gasoline use is expected to decline in the future even under a baseline case, but new tailpipe emissions rules really put the pedal to the metal – rapidly accelerating that process. This would be a major shock on demand for corn used to produce ethanol spurring potentially devastating impacts on farmers and the rural economy.       The New Tailpipe Emissions Rule The Environmental Protection Agency recently released its final rule for multi-pollutant emissions standards for model years 2027 and later light-duty and medium-duty vehicles with heavy reliance on the use of electric vehicles. The ruling dictates that sales of non-electric vehicles will drop from over 92% of new vehicle sales in 2023[i] to under 30% of new vehicle sales in 2032. In the EPA central scenario, that translates to a 6.9-billion-gallon reduction in motor gasoline use in 2032, a 5.7% decline from the baseline projection for that year. Motor gasoline use is expected to decline in the baseline, but...

Feb 16, 2024

Key Issues: Production

Author: Krista Swanson

USDA released the Grains and Oilseeds Outlook this week providing an initial look at the 2024/25 marketing year projections that include lower production, greater domestic use, increased exports, and higher ending stocks as compared to the current 2023/24 market years. The following is a summary and some additional context for five projections from the latest outlook.   Yield Corn yield is projected at 181 bushels per acre. Yield projections depend on the modeling approach and time series used. While a 3.7 bushel per acre increase over the 2023 record 177.3 bushels per acre may seem like a stretch, a regression on annual yields from 2023 to several different historical points including 1934, 1980, and 1996 all predict 2024 yields within about one bushel of the USDA projection.   Trendline yields are a reasonable expectation at this point. Adverse weather is generally thought to have a negative impact on yields but in 2023 a record yield was achieved in a year with widespread...

Feb 15, 2024

Key Issues: Animal Agriculture

Author: Michael Granché

Two weeks ago, the National Corn Growers Association’s (NCGA) Market Development Action Team (MDAT) converged with industry leaders at the National Cattlemen’s Beef Association (NCBA) annual convention in Orlando, Florida. During the week Matt Frostic, Troy Schneider, Denny Vennekotter, Sarah McKay, and Michael Granché engaged in crucial discussions with NCBA's executive leadership, highlighting shared priorities and emphasizing the significance of bolstering their symbiotic relationship.   On Wednesday morning, Troy Schneider joined Cattlemen to Cattlemen show host Kevin Ochsner for an exclusive RFD-TV interview. Together, they illustrated the integral partnership between beef and corn, showcasing how these industries collaborate to drive progress and maintain profitability for farm operators. Then, on Thursday morning, Michael and Kristen Schneider took part in the annual #BeefIt5k race, a vibrant event symbolizing the energy and dedication within the industry fueled by the...

Feb 9, 2024

Key Issues: Trade

Author: Krista Swanson

A combination of climate, conflict, and currency values are factors in cost competitiveness that impacts transits and overall U.S. corn exports.   Climate Climate conditions brought widespread drought to the United States Corn Belt in 2023. Dry conditions in the Mississippi River basin led to record low water levels. As a result, barge weight and traffic restrictions were imposed, and the 7.7 million tons of corn moved by barge on the Mississippi River in 2023 was 30% lower than 2022 and 54% lower than 2021. Ultimately, the cost of added time and weight restrictions were factors contributing to a higher corn price at port but also meant pace of getting grain to the port was slowed.   Climate-induced waterway challenges for U.S. corn don’t end at the Gulf. Extreme drought has forced substantial scaleback of shipping through the Panama Canal, a key global maritime channel. The Panama Canal Authority (ACP) has reduced traffic to 24 ships a day, about two-thirds of the normal...

Dec 1, 2023

Key Issues: TradeTransportation and Infrastructure

Author: Krista Swanson

For the second year in a row, drought conditions are impacting transportation on the Mississippi River at the peak shipment point of the year. Shallower river levels mean barge weight restrictions, slower barge traffic, and higher costs to ship commodities on the river. Ultimately, this translates to a relatively lower price at the farmgate and higher cost for the world buyer.   Drought Slows Grain Barge Traffic in 2022 and 2023 The Mississippi River is an important channel for commodity transportation. The USDA reports the final mode of transport was barge for 13% of U.S. grains in 2020, and 46% of exported U.S. grains[i]. There are normally two peaks in grain barge movements, one in late summer leading up to the end of the marketing year for corn and soybeans, and the other emerging in the fall harvest season and into the post-harvest months.   The impact of low water levels on grain barge movements was notable in 2023, marking the second consecutive year of drought...

Mar 29, 2023

Key Issues: Animal Agriculture

Author: Michael Granché

Last week, the U.S.A. Poultry Egg Export Council (USAPEEC) held their annual Strategic Planning Conference in Tokyo, Japan. Bringing together USAPEEC’s global staff and industry representatives from across the sector, the conference enables participants to analyze opportunities for expansion and barriers to market access, and then formulate strategy to increase and create additional demand for American poultry and egg products. Representing National Corn Grower Association’s Market Development Action Team was Michigan Corn Growers Association Vice President John Delmotte and NCGA Market Development Manager Michael Granché. On Thursday, Delmotte and Granché provided a presentation that highlighted the value of partnerships, highlighted goals and progress outlined within NCGA’s Sustainability Report, and illustrated how USAPEEC and NCGA have worked together through projects their Chicken, Egg, and Turkey Buyer’s Guides.   “Most farmers think that our corn is exported as grain to...

Sep 21, 2022

Author: Michael Granché

The National Corn Growers Association (NCGA) hosted a group of Agriculture Future of America (AFA) student delegates in the Washington D.C. office as part of AFA’s Policy Institute. NCGA staff provided a tour and overview of the work the organization does and led discussions around how the national and state associations work collaboratively across the country to increase opportunities for America’s corn farmers.   NCGA staff were able to engage with the student delegates through different workshop and roundtable opportunities including an office tour followed by an “NCGA 101” to help provide students with some visibility of all of the different opportunities and skillsets needed within a trade association. Brooke Appleton, NCGA Vice President of Public Policy, participated in AFA’s ‘Careers in Policy’ roundtable, Angus Kelly, Director of Public Policy, Trade and Biotechnology, was a panelist for the ‘Foreign & Domestic Affairs’ discussion, and Michael Granché, Market Development...

Jun 9, 2022

Key Issues: Animal Agriculture

Author: Michael Granché

June is National Dairy Month, and we can’t think of a better way to celebrate than to focus on the relationship between the corn and dairy industries! Did you know that dairy cattle consume 30% of dried distillers grains with solubles (DDGs), a co-product of the ethanol production process? In 2021, DDGs used 1,055 million bushels of corn.   The National Corn Growers Association (NCGA) engages with the dairy industry through the Innovation Center for U.S. Dairy, who recently hosted the 2022 Dairy Sustainability Alliance Spring Meeting in Oak Brook, Illinois. NCGA’s Market Development Manager Michael Granché attended the conference where participants discussed sustainability in a transitioning world away from COVID-19 restrictions, the FARM ES data model, the intersection between high tech and high touch, driving profits with purpose, global methane pledges and cultivating a culture of social responsibility.    “It was great to engage in such high-energy conversations around what...

Jul 21, 2021

Author: Michael Granché

Agriculture Future of America (AFA) held their Crop Science Institute virtually July 18 – July 20. On Monday evening, National Corn Growers Association (NCGA) Manager of Market Development Michael Granché joined the Career Roundtable representing jobs in associations, nonprofits and member services. Granché was joined by Ellen Zimmerman, Director of Industry Relations for U.S. Grains Council, and together they spoke to three rounds of college students from across the country, answering their questions, providing advice, and sharing their own agriculture story, including how they began working for associations.   “I was involved with AFA as a college student and was actually one of the first three students to attend AFA from Virginia Tech. The experience had such a huge impact on me and definitely helped shape me into who I am today. AFA has a great program, and they’re truly helping equip the next generation of leaders who will help solve the agriculture industry’s challenges...