Good News for Corn Farmers

Kansas Corn Growers See Movement on Trade, Ethanol and Farm Bill

Three big developments in trade, ethanol and the farm bill got the attention of Kansas Corn Growers Association leaders this week. The news from Washington, DC was mostly positive for farmers, according to KCGA President Ken McCauley, White Cloud.

“We’ve been waiting for Washington, DC to take action on trade, ethanol and the Farm Bill and it looks like things are beginning to move forward. That’s welcome news for corn farmers,” McCauley said.

U.S., Mexican and Canadian officials signed the new U.S.-Mexico-Canada Agreement (USMCA), which is a positive step toward maintaining key markets for agricultural products. Mexico is the top export buyer for U.S. corn. Mexico is also a top market for U.S. red meats and DDGS and is a promising market for ethanol exports.

“The best news was the signing of the trade agreement with our key partners, Mexico and Canada,” he said. “Trade with Mexico is a top priority for Kansas Corn.”EPA released the ethanol volumes for 2019 with its Renewable Volume Obligation rule. While the ethanol levels are in accordance with the Renewable Fuel Standard, there are concerns.

“With EPA’s ethanol announcement, we do have concerns that while the ethanol volumes follow the RFS, the agency doesn’t account for waivers that may be given to refiners,” McCauley said. “If EPA did grant refiner exemptions without reallocating those gallons, ethanol demand in the RFS could be undermined.”

Corn growers continue to closely watch House and Senate leaders who said they expect to move forward with a final agreement on the Farm Bill early next week.

“It looks like the Farm Bill will move forward next week, but we still have to keep pushing Congress to pass the farm bill this year,” he said. “We’ll continue to work with NCGA to make sure corn farmers interests are served in these areas. One thing we all need is certainty., and these actions on trade, ethanol and the Farm Bill will help our farmers see the path forward as we look ahead to 2019.”

Farmers can encourage their legislators to push the Farm Bill over the finish line by visiting NCGA’s action center here:

Kansas Corn Growers Association represents its members in legislative and regulatory issues and promotes corn and corn products.