ORLANDO, Fla. -- Better markets, increased competition, lower costs, new revenue streams for producers.

 U.S. Secretary of Agriculture Tom Vilsack touched on these topics and more during his keynote speech at the General Session of the 2023 Commodity Classic held last weekend in Orlando, Florida.

 “In many ways, Vilsack said all the things that we wanted to hear,” said Chris Cherry, Indiana Corn Growers Association (ICGA) Vice President. “Vilsack recognized our need for crop insurance as a safety net and he doesn’t foresee any significant changes to that. Vilsack also reminded those in attendance that 90 percent of farms reported a record income. But 90 percent of those farms with record income were those that also included off-the-farm income. We don’t want a situation where farmers have to work so hard on the farm to put food on the table and then have to work off the farm to sustain his or her way of life.”

Vilsack addressed that dilemma, adding that “U.S. agriculture and producers in general need to do more.”

“In a record year we strive to help farmers even more,” he said. “We need to focus on input costs and trade, yes, but we need to do more. The farmer needs additional income streams and market opportunities. Instead of relying on livestock sales, commodity sales and government payments one needs to create three to five additional profit centers on the farm, so in case commodity sales dip you can have an added source to balance that loss. This is one reason we promoted the Climate-Smart Commodities Project.”

One topic that struck a chord with many in attendance was that of fertilizer prices, as those have more than doubled between 2021 and 2022.

 “Vilsack addressed the cost and availability of fertilizer and the gathering of grants to increase the capacity at different plants across the U.S. as a way of making fertilizer more cost-effective,” said Kevin Lemenager, Chair of Soy Policy with the Indiana Soybean Alliance.

 Vilsack said the USDA received $3 billion in applications from more than 350 independent businesses from 47 states and two territories for the first two rounds of a new grant program to add domestic fertilizer production capacity.

 “First round of awards will spur competition and give U.S. farmers more choices and fairer prices,” Vilsack told the gathering.

 Vilsack added that the first $29 million in grant offers will help independent businesses increase production of American-made fertilizer, which will spur competition, give U.S. farmers more choices and fairer prices and reduce dependence on unreliable foreign sources like Russia and Belarus.

“I know that increased costs for fertilizer and other inputs have put a strain on farmers and cut into the bottom line,” Vilsack said. “By expanding the production of domestic fertilizer supplies, we can grow independent local businesses, bring production and jobs to rural communities and support fair prices for our farmers.” 

Vilsack touched on E15. Ethanol has been around for a while, but E15 is a newer product, offering traditional E10 gasoline blended with an additional five percent of ethanol, creating a 15 percent blend. Although E15 has only hit the fuel market recently after overcoming a few initial regulatory setbacks, it has grown rapidly, directly benefiting Indiana corn farmers and others as it increases consumer demand for ethanol.

“Vilsack addressed E15 and sees it as a great opportunity for American agriculture,” said ICGA President Scott Smith. “Indiana is very strong when it comes to ethanol.”

 Indiana is the fifth largest ethanol-producing state and nearly one-third of the state’s crop is converted into ethanol.

 Vilsack also looked at corn producers and their opportunities to someday be of assistance to the airline industry by supplying it with fuel in the near future.

 “Airline fuel could be a sustainable, low carbon fuel,” Vilsack said. “The aviation industry is a 36 billion gallon industry that doesn’t exist today. It’s a new opportunity for American agriculture to lead the way. That’s a big market because you can’t put a battery in an airplane. The opportunity to have clean energy and fuel to help that industry could be big for Indiana corn farmers as well as corn farmers across the United States.”

 In the fall of 2021, the USDA joined the government-wide Sustainable Aviation Fuels (SAF) Grand Challenge to meet 100 percent of U.S. aviation fuel demand by 2050.

 Established in 1996, Commodity Classic is the largest farmer-owned, farmer-run trade show event and is produced by the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers and the Association of Equipment Manufacturers.