After three years of low grain prices and low profitability, the nation’s commodity groups share a common priority for the year ahead: finding new demand sources, both internationally and at home.
While they are appreciative of recent farm aid, they want to get their income from the marketplace.
NCGA Pushes for Year-Round E15
For corn growers, that means securing year-round E15. Neil Caskey, CEO of the National Corn Growers Association (NCGA), says this is a vital tool for producers.
“This is going to be the most expensive corn crop in U.S. history. And so we’re looking for ways to keep them afloat,” Caskey says. “E15, in our opinion, is probably the easiest thing that Congress could do to signal that they understand our concern.”
Recent efforts to pass E15 failed. Additionally, a task force of biofuels and petroleum interests working on a compromise missed its February deadlines.
“I think that they’re starting to realize what we already knew. It takes a lot of time to find compromise on complex biofuels policy,” Caskey says.
Still, the group continues to push because its analysis indicates it will move the needle.
Caskey also says full implementation of E15 could eventually result in another 2.5 billion bushels of corn demand.
NCGA Backs USMCA Renewal
Caskey notes trade is the other critical demand component. This is why the renewal of USMCA is important, and NCGA supports a trilateral agreement.
“I think that we’ve got a really good deal in USMCA in its current form,” Caskey says. “So, I would urge the president and the administration to start there and extend that. And so that would certainly be our preference. But the single most important thing to us is ensuring that we maintain access to the Mexican and Canadian markets for U.S. corn.”
NAWG Also Backs USMCA
The nation’s wheat growers also support USMCA to boost exports. Sam Kieffer, CEO of the National Association of Wheat Growers (NAWG), says the relationship with North American neighbors is vital.
“Mexico is the No. 1 export destination of U.S.-grown wheat,” Kieffer says. “So we certainly want to make sure we keep that relationship strong and going — and Canada’s a great partner as well.”
NAWG Asks for Food For Peace Certainty
Kieffer says while new trade deals are needed, they are also building markets through the Food for Peace Program. They want Congress to move the program to USDA as part of the farm bill.
“USDA knows how to deal with farm commodities. USDA is already in the business of engaging in food aid programs globally. They have the infrastructure, they have the personnel and they understand agriculture. So the farm bill that is ready to be moved in the House here soon has a provision that would include that,” Kieffer says.
And he says a long-term farm bill is needed to provide certainty to farmers and offer a safety net. They’re excited the House Ag Committee started its markup on March 2.
“The One Big Beautiful Bill did make some significant investments for the future, but there’s three years of market loss that our growers are struggling with at the moment, and they’re making hard decisions and some of them are reducing acres, some of them are letting land go and there’s a price to be paid for that as well,” Kieffer says.
Long-Term Trade Deal With China
For U.S. soybean producers, the trade relationship with China is critical. They are seeking a long-term agreement in writing when national leaders meet in April.
“We’re urging the Trump administration to make sure that we lock in, you know, a stable agreement with China,” says Steve Censky, chief executive officer for the American Soybean Association. “We had the 12 million metric ton commitment for this marketing year. We’d love to see that go up. If that went up by another 8 million tons, we would welcome that. And then of course there’s the commitment for 25 million metric tons for each of the next three years’ minimum purchase requirements.”
SCOTUS Tariff Ruling Presents No Threat
Censky’s not concerned with the Supreme Court striking down the IEEPA tariffs or that President Trump’s new tariffs will take away the leverage the U.S. has with China.
“The tariffs, of course, add to uncertainty in the whole trading relationship. But again, you know, I think the president talks about what a good relationship he has with President Xi, which is wonderful. And so we’re hoping, you know, that he will be able to have a deal with China that will be positive for soybean growers,” Censky says.
Diversifying Trade
While China imports more soybeans than the rest of the world combined, ASA is also looking at diversification of their exports.
“Trade remains so important to soybean farmers. We export over half of what we produce, and we’re still very much dependent on opening up foreign markets. So through the stabilizing, making sure that we’re keeping trade on a stable plane with China, is very important, but also opening up new markets is very important to us,” Censky says.
ASA Eyes Increased Biofuels
Increasing biofuels demand is also a top priority for ASA. The group is pleased the Renewable Volume Obligations (RVOs) moved to the Office of Management and Budget (OMB) this week.
“EPA has proposed the highest volumes on record, and we want to make sure that in the final rule that’s adopted that those are brought home. Because that’s so important to soybean demand, soybean prices, but also the demand for the oil produced from soybeans. Over half of the oil that’s produced from soybeans goes into biofuels,” Censky says.
Censky says the EPA proposal for 5.6 billion gallons of biomass-based diesel would add 2 billion gallons to current levels.
“It would be over a 60% increase. We really think that in the previous RVOs that were set under the Biden administration, they really underestimated the capacity for us to produce,” Censky adds.
NSP Supports E15
The National Sorghum Producers (NSP) is also focused on biofuels, including E15. Tim Lust, CEO of NSP, says the industry needs an immediate boost.
“We need the demand now. With the softness in prices and profitability across all commodities, it’s something,” Lust says. “It’s one of the few things that we could do that would have an immediate impact that is good for farmers, good for demand, good for saving the government money.”
He says they hope Congress can find a legislative vehicle to move the policy forward soon.
“Obviously, we need a deal. We want a deal. Exactly how that goes is something that’s still got to be threaded through Congress. Nothing gets passed through Congress simply today,” Lust adds.
NSP Supports Trade
Sorghum producers are also looking to exports. While USMCA is key, they are also excited about new trade opportunities.
“From an international standpoint, where’s the trade opportunities and what’s that look like? [There are] a lot of new agreements going on. And so for our industry, it’s about that market access and long-term market access,” Lust says.
NSP is eyeing two of the world’s largest populations for the most immediate impact on sorghum demand.
“Most years we do about $1 billion worth of trade with China. So, it’s certainly a significant item. In the last about eight or nine weeks now, they’ve bought about 40 boats, and so certainly that’s very influential to our industry. One you know, the one with long-term potential for us is the India agreement, and sorghum being mentioned in there is important from a long-term [perspective],” Lust adds.
This industry-wide push for increased demand aims to secure better long-term prices for the nation’s grain producers.