News

Farmer says boosting trade demand key to profitability

A former director with the U.S. Grains and Bioproducts Council says the organization’s work to expand markets for corn, sorghum, barley, and ethanol products is proving vital for farmers.

Jim Reed, who farms in central Illinois, says export demand continues to be a saving grace for commodity prices.

“Corn exports this year are already 30% ahead of last year at this time, and last year was a record export year for corn.”  He says, “Ethanol is the same way, it’s kind of really helped put a floor underneath the market for the prices.”

He tells Brownfield a recent agreement with Thailand should further boost corn exports, but he’s most optimistic about expanded ethanol sales to drive corn demand.

“There’s a boon in the ethanol market overseas.”  He says, “A lot of Southeast Asia is moving to an E10 platform. The benefits of ethanol are being recognized, and that’s just been a worldwide story.”

With potential movement on nationwide E15 at home and increased global demand, does the U.S. have enough corn?

“Oh yeah, and we don’t need acres to do it.”  He says, “The yield curve has been going up and up, and we’ve always got a surplus.”

Reed says the Council’s efforts to develop trading relationships in over 30 countries provide farmers with some of the highest return on investment of their checkoff funds.

AUDIO: Jim Reed – Illinois farmer