PEORIA, Ill. — Last week, Illinois Corn Growers Assoc. (ICGA) President Gary Hudson remarked that corn growers should consider which candidates for office during the midterm elections will work to promote better market access for their commodities before casting their votes earlier this week.
Hudson later followed this initial statement with a news release fleshing out exactly how political inaction or infighting is restricting valuable market access for grain producers. He warned current limitations to market access are pushing corn prices down to levels that could trigger farm program and crop insurance payments.
"Obviously, based on basic economic principles, we can expect a big crop to mean lower prices, all other things remaining the same. But our big crop isn’t the only thing driving corn prices down," he said. "The government’s role in these low corn prices can’t be ignored."
Using research results funded by the Illinois corn checkoff, ICGA has literally put its money where its mouth is by providing elected officials and other policymakers data on the impact of regulations to waterways infrastructure, ethanol and other market drivers for corn grain. Specifically, the following market barriers must be addressed, according to Hudson:
•Immediate funding must be budgeted for the Water Resources and Reform Development Act (WRRDA), in addition to the implementation of an industry-supported waterways user fee
•The Renewable Fuel Standard must be returned to Congressionally-mandated ethanol volume numbers; the U.S. EPA is expected to announce revised 2014 volume standards soon
•The Illinois General Assembly must pass the Consumer Fuel Choice for Illinois bill to encourage gasoline retailers to offer E15 to their customers
•The General Assembly must also support a proposed Chicago ordinance that would make E15 available at fuel stations within the city
He also appealed to corn producers to do what they can as individuals to encourage corn utilization. "For example, use E85 if you have a flex-fuel vehicle," he explained.
There are other examples of barriers to grain and ethanol markets caused by either too much, not enough or dysfunctional government, according to Betsy Gillette, market research director for Technology Ventures Group. Those include a cumbersome application process for new ethanol processing technologies, environmental regulations and permitting requirements.
The same can be said for new seed hybrids and weed and pest management technologies caught in the bureaucratic pipeline, industry experts agree.