2021 January Roots

January 2021

Roots IOWA CORN

MEMBERSHIP POLICY MARKET DEVELOPMENT RESEARCH EDUCATION

Iowa Corn Board of Directors DISTRICT 1

DISTRICT 2

DISTRICT 3

Kelly Nieuwenhuis

Jerry Maier

Greg Alber

Vice President Primghar, IA

Chad Harms

Eagle Grove, IA

Stu Swanson Galt, IA

President Independence, IA

Derek Taylor Fort Atkinson, IA

Milford, IA

Mark Mueller

Dean Meyer

Waverly, IA

Rock Rapids, IA

Iowa Corn Staff:

DISTRICT 4

DISTRICT 5

DISTRICT 6

Craig Floss, Chief Executive Officer

Larry Buss

Roger Zylstra

Pete Brecht

Brian Jones, Chief Operating Officer Lindsay Calvert, Leadership Development Manager Shannon Textor, Director of Marketing and Communications

Logan, IA

Jolene Riessen Ida Grove, IA

Chair Lynnville, IA

Rod Pierce Boone, IA

Brandi Snyder, Public Relations Manager

Central City, IA

Jim Greif Chair Monticello, IA

Dennis Friest

Mackenzie Felt, Publications Manager

Lance Lillibridge Vice President Benton, IA

Logan Lyon Muscatine, IA

Radcliffe, IA

Victoria Butt, Communications Outreach Manager Mindy Larsen-Poldberg, Director of Government Relations Emily Callison, Government Relations Manager Kevin Studer, Federal Policy Advisor Carrie Dodds, Director of Grower Services Lowell Appleton, District 1 Field Manager Joni Erwin, District 2 Field Manager John Finley, District 3 Field Manager Janelle Kracht, District 4 Field Manager Danielle Balvin, District 6 Field Manager Jenni Richards, District 7 Field Manager Alyssa Preston, District 9 Field Manager Rod Williamson, Director of Research and Development David Ertl, Technology Commercialization Manager

DISTRICT 7

DISTRICT 9

Menlo, IA

Middletown, IA

Ralph Lents

Stan Nelson

President Randolph, IA

DISTRICT 8

Adam Bierbaum

Tingley, IA

Carl Jardon

Griswold, IA

Gary Petersohn

Wayne Humphreys Columbus Junction, IA

Dan Keitzer Mediapolis, IA

Steve Kuiper Knoxville, IA

Ben Gleason, Sustainable Program Manager Alex Buck, Industrial Innovation Manager Julie Kirby, Director of Finance and Business Operations Sarah Kirk, Financial Manager Lynnette Rohrs, Administrative Services Manager Michele Poe, Administrative Assistant Donna Lemon, Administrative Assistant Valerie Sanchez, Accounting Analyst 2 | Roots • 2021

Iowa Corn Promotion Board Iowa Corn Growers Association Roots • 2021 | 3

CHERISHED MEMORIES: IOWA CORN DISTRICT FIELD MANAGERS REFLECT “Every year we work hard to empower growers to be proud of what they do through our events. It is great to see so

“My favorite events of the year were the 2021 planning meetings for my county groups. It’s generally the first

many growers light up when they connect with a consumer to find common ground. I love being a part of watching

meeting since harvest wraps up, and everyone is a little more relaxed and energized with new ideas for the new year.

them be passionate about their work.”

As a district field manager, I really enjoyed getting to see the enthusiasm and passion for ag in local groups and

— Carrie Dodds, Director of Grower Services

leaders. Being able to help organize and channel the energy they bring into leadership positions and advocating on behalf of all Iowa farmers is the most rewarding part of my job.”

— Danielle Balvin, District 6

“What a year — my favorite 2020 event was our involvement at the Clay County Fair. We took informational trailers, displays and had a few interactive games. It was a hit. We had some great conversations and were able to connect with both members and Iowa corn users. It was a fun day to volunteer and help out and I hope this coming year is

“The people I work with are some of the most intelligent and passionate people I have ever had the pleasure of

just as successful.”

meeting. Our growers are the standard of hard work and honesty and they are icons of true America. Each person

— Lowell Appleton, District 1

brings a unique experience and knowledge to the overall team and helps us move forward each day. Because of these two factors, I am constantly learning new information and proud to work for Iowa Corn.”

— Jenni Richards, District 7

“What I enjoy about being a district field manager, is that no day is ever the same. One day I would be riding in a combine or a tractor talking with a grower about ICPB’s checkoff involvement and the importance of ICGA membership, and then the next day be speaking to an FFA chapter about the importance of being a leader in agriculture.”

“My favorite event each year is our annual policy roundtable and 2020 was no different. Farmers were able to connect

— Joni Erwin, District 2

to talk about the issues that are affect their operation in their specific area or nationally. They propose items for our organization to lobby for them on at the state and national levels. It is a rare time when the power of the individual becomes the power of the group, and then we are able to move these ideas forward to be voted on by the entire state

“Last year I enjoyed working with individual farmers and being able to visit their farms. Plus, I’m proud of all of the

delegation of farmers who are members of Iowa Corn. This whole process is always an exciting and passionate time for

events that our local farmers were able to put on safely through their county organizations. Whenever a farmer gets to

farmers to advocate for themselves and their industry. I’m excited to see what the 2021 policy roundtable will bring.”

explain why they enjoy farming in Iowa I see real results. Consumers like to hear from real growers and be invited out to

— Alyssa Preston, District 9

their farms. It’s always great to see the impacts happening.”

— John Finley, District 3

“I enjoy the interaction with my area growers and getting to know each of them. Everyone has a story to tell and

grassroots members is vital and I’m glad to be able to be a part of it through policy development, promotion, market

Join Our 2021 Farm Hall Meetings

development, research and education opportunities.”

Iowa Corn is kicking off 2021 with a new program aimed to keep you more informed and continue the success of the Iowa Corn

— Janelle Kracht, District 4

Farmer Fridays radio show that aired during harvest. We will be hosting Farmer Friday Farm Hall meetings during the coming winter

it’s my honor to hear it. It’s an amazing experience to build relationships with them, get to know their families and watch their children grow and come back to the family farm or start their own careers. The success of our

months moderated by Iowa Corn district field managers. Tune in to receive updates on many Iowa Corn Promotion Board (ICPB) and Iowa Corn Growers Association (ICGA) programs by joining the 1-hour phone calls every other Friday in January, February and March. Calls will also be recorded and uploaded to iowacorn.org for farmers to access at any time.

Call Topics Jan. 8: ICPB research program highlights Jan. 22: Iowa Corn Conservation Programs and talking to your landlord Feb. 5: ICGA policy update from the Hill (state and federal) and member benefits Feb. 19: ICPB ethanol market development programs March 5: D.C. update from the National Corn Growers Association March 19: ICPB consumer education and promotion highlights

To register for Friday Farm Hall meetings, please visit iowacorn.org/farmhall 4 | Roots • 2021

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I O W A

C O R N

G R O W E R S

A S S O C I A T I O N

ICGA 2021 LEGISLATIVE PRIORITIES From Capitol Hill in Washington D.C. to the state capital in Des Moines, the Iowa Corn Growers Association (ICGA) has a strong voice, allowing us to stand for legislative priorities that mean the most to you. When you are a member of ICGA, you reserve a spot for yourself at the table, allowing you to voice your opinions on what matters most to Iowa corn growers.

These priorities are decided by you during our round table meetings. These meetings allow for hot-button issues to be discussed and prioritized at the grassroots level. From there, the top issues advance to the ICGA Annual Grassroots Summit held each August, an event you have the opportunity to be a part of each year. Legislative priorities are then finalized by the ICGA Board of Directors in December.

Thank you for bringing these key priority issues to your elected officials throughout the year as we are currently pursing them at the state and federal level on your behalf!

Like many of you, I am happy to see 2020 in the review mirror as it was a tough time for Iowa corn farmers. Despite difficulties created by historic weather disasters, challenging markets and a worldwide pandemic, the Iowa Corn Growers Association (ICGA) is determined to fight for our farmer members in the toughest of circumstances.

ICGA members and leaders worked tirelessly creating positive change for corn farmers statewide in 2020, efforts they should be proud of. We helped ensure ethanol infrastructure counties expand by supporting the Higher Blends Infrastructure Incentive Program (HBIIP) and fought so that not only corn farmers, but biofuels and livestock producers, too, received the relief they deserved through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. None of these efforts would be possible without our members’ voices and engagement as you set a strong foundation for ICGA to be successful when we all work together. Because of your membership, we have been able to speak with a unified voice representing 7,500 farmers across our state, and together we can celebrate accomplishments that have contributed to Iowa corn farmers’ long-term profitability. But we believe we can achieve more by increasing our membership to represent 10,000 farmers and continuing to be a strong advocate for Iowa agriculture.

As our membership grows, so does our impact. I encourage you to reach out to neighbors, friends and family to relay the importance of ICGA and invite them to join. Have conversations about the impact of our unified voice and wear your ICGA hat proudly. With your help, we can continue to work towards our goal of 10,000 members strong.

To our current ICGA members, thank you for your continued support. We look forward to working together to break down regulations and barriers while creating new markets and opportunities for your family farm. For those of you looking to join, now is the time! I truly believe we are stronger together and eagerly await your addition to our powerful corn farming family. The year for you to get involved is 2021; visit iowacorn.org.join today for more information.

2021 ICGA STATE PRIORITIES • Taxes — Protect critical tax credits (Section 179 and biofuels).

•E thanol — Obtain and increase funding to cost share the Renewable Fuel Infrastructure Program (RFIP).

• Livestock — Support existing regulatory framework for the livestock industry.

• Conservation/water quality — Maintain legislative funding stream for Iowa Nutrient Reduction Strategy (NRS).

2021 ICGA FEDERAL PRIORITIES •E thanol — Retain the Renewable Fuel Standard (RFS), reallocate unjustified small refinery exemptions (SREs), reduce regulatory barriers for higher blends and support low-carbon high-octane fuel.

•C arbon — Support carbon credit sequestration programs.

•T rade — Expand new and protect existing bilateral and multi-lateral trade agreements.

•T rade — Protect/expand funding for Market Access Program (MAP) and Foreign Market Development (FMD) as part of the Farm Bill.

•T ransportation infrastructure — Maintain and upgrade our inland waterway systems.

Carl Jardon President, ICGA 6 | Roots • 2021

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MEMBERSHIP

IOWA CORN FARMERS STEP UP FOR THEIR LOCAL COMMUNITIES

I

owa corn farmers have always worked hard to feed and fuel Iowans, but when COVID-19 struck, farmers from across the state went out of their way to provide even more for their local communities. Programs donating corn-fed meat to those in need, pizza to hardworking essential workers and even supplies to get meals to communities were created by farmers and agriculture organizations alike. During the pandemic, Iowa Corn had the privilege of creating new programs as well as participating in many others to respond to the needs of Iowans this year. If 2020 has taught us anything, it’s that we’re all stronger together.

products were delivered to over 100 hospitals in local Iowa communities by ICGA members. From one essential worker to another, Iowa corn farmers were proud to provide a meal as a token of their appreciation to healthcare workers during these challenging times. “Iowa corn farmers wanted to say thank you and show we are stronger together during difficult times,” said Iowa Corn Promotion Board (ICPB) Chair Roger Zylstra, a farmer from Sully, Iowa. “As healthcare professionals are relentlessly keeping us and our families safe, Iowa’s corn farmers and livestock producers are proud to be working hard to continue to provide a safe, secure food system.”

Iowa Corn’s Thank You to Essential Workers Iowa Corn was proud to partner with Casey’s General Store and the Atlantic Coco-Cola Bottling Company to thank essential healthcare professionals across the state of Iowa for their hard work to keep Iowans safe during the COVID 19 pandemic.

In June, over 1,500 Casey’s pizzas and 17,280 cans of Coke

Iowa Food Bank Partnership Iowa Corn teamed up with the Food Bank of Iowa to raise funds towards feeding and supporting Iowans in need during the worst of the pandemic. The Food Bank of Iowa serves hungry Iowans across 55 counties, allowing Iowa farmers to give back in their communities with products produced from corn.

The Iowa Corn bags were intended for use at summer events and activities. With the sudden change of plans, Iowa Corn redirected the bags to help Iowans with the Iowa Food Bank during the pandemic.

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Iowa Corn contributed $10,000 to match funds raised by the “Iowa Corn Team,” making the total donation $20,000 to help combat food insecurity in Iowa. “Corn grown in Iowa benefits our entire state, whether it’s feeding livestock and fueling cars or being enjoyed on the tables of our friends and neighbors,” said Michelle Book, president and CEO of the Food Bank of Iowa. “We are so grateful for everything Iowa Corn does to support our state and for this generous gift that encourages others to get involved.” The contributed funds provided over 50,000 meals of corn-fed meat, dairy and eggs to Iowans. Iowa Corn also donated 5,000 “Corn Grows Iowa” shopping bags to the Food Bank of Iowa to assist in safely distributing these meals across the state. We thank anyone who donated funds to this cause; it truly made a difference in many Iowans’ lives.

Beef Up Iowa A partnership between the Iowa Department of Agriculture and Land Stewardship (IDALS), Iowa State University and Iowa’s beef producers created the “Beef Up Iowa” program.

This program allows students and employees at Iowa State University to work with Iowa beef producers to process donated cattle that would then be donated locally to Iowans in need.

Iowa Corn is proud to not only support the program but to have contributed funds, as well. Iowa Corn’s Animal Agriculture and Environment Committees donated funds directly to the “Beef Up Iowa” program while district committees also contributed.

Among those was ICGA’s District 2 Committee, which donated funds to purchase two 4-H project steers from Floyd County to be processed at Iowa State University. The beef harvested from the steers was then donated back to the Rockford, Iowa, community through Amy’s Food Bank. “The food bank usually has a lot of meat donated around the holidays, like Thanksgiving and Christmas, but throughout the year, they run low on beef and pork products. It was cool to see the corn-fed meat I raised as a 4-H project help out multiple families in my own community this fall,” said Heidi Howe, one of the livestock contributors. The program officially started in July and has since processed 66 head of cattle and distributed more than 31,657 pounds of ground beef to local communities.

Pass the Pork Through the “Pass the Pork” program, the Iowa Pork Producers Association (IPPA) and IDALS help Iowa pig farmers donate pork to Iowa food banks. It is an all-hands-on-deck effort as many local meat processors extend their hours of operation to process and package donated hogs. Once the pork is processed, the program leans on Iowa food banks to get the pork products into the hands of Iowans in need. The “Pass the Pork” program officially kicked off in April and has since processed 489 hogs.

It first started as a partnership between small-town lockers that processed close to 50,000 pounds of ground pork. As the need for processing facilities grew, Iowa State University opened their facilities to continue the program and processed over 50,000 pounds of ground pork. The program as a whole provided over 400,000 meals to food insecure Iowans. Many ICGA members donated to the “Pass the Pork” program, including Katie Hall, a grower from Polk County. “I was familiar with the increased need at the Food Bank of Iowa due to COVID-19. And this was happening while the ag economy was working through pandemic-related supply chain issues.

It seemed like a win-win situation that would provide help to those in need and be a small outlet for hog processing,” explained Hall.

Farmers across the state stepped up and donated through these programs, but local donations were equally appreciated. As schools returned to the classroom, Iowa Corn fulfilled requests for water bottles to be used in classrooms and continued to pass out hand sanitizer during harvest meals and small events.

Thank you to all members who contributed to any one of these programs and to those who will continue the tradition. When times get tough, the agriculture community never fails to prove we truly are #StrongerTogether!

Iowa Corn encourages farmers to donate to their local food bank!

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I O W A

POLICY

C O R N

G R O W E R S

A S S O C I A T I O N

2020 ETHANOL WINS

T

he Iowa Corn Growers Association (ICGA) takes pride in playing both offense and defense when it comes to advocating on state and federal levels to protect and expand markets for corn farmers. Although 2020 was a tough year for Iowa’s corn farmers, we do have accomplishments to recognize, especially in the ethanol industry. Iowa Corn has been working hard on your behalf; read below for our 2020 ethanol success stories.

Iowa Corn pushed with a united front alongside our ethanol partners requesting the Trump Administration to not appeal the Tenth Circuit Court decision on Small Refinery Exemptions (SRE) under the Renewable Fuel Standard (RFS) and prevailed. The Environmental Protection Agency (EPA) has since denied 54 of the 2011-2018 gap year waiver requests, leaving 17 gap year waivers that remain unresolved and an additional 29 SRE requests for the 2019 compliance year.

ICGA proactively supported our ethanol industry during the COVID-19 pandemic by requesting the U.S. Department of Agriculture (USDA) to administer help through their Commodity Credit Corp (CCC) fund by sending a letter to Secretary Sonny Perdue on April 8, 2020. The USDA denied this request, so we shifted toward Congress, where it currently sits.

Iowa Corn worked diligently with National Corn Growers Association (NCGA) and many industry stakeholders on the development and alignment of potential future growth strategies within the domestic ethanol market.

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To that end, Rep. Cheri Bustos of Illinois introduced the Next Generation Fuels Act in late 2020 and Iowa Corn, alongside its national partners, have been using this opportunity to educate elected officials on the value ethanol provides in increasing fuel economy through octane while decreasing emissions.

The Iowa Legislature passed, and Gov. Kim Reynolds signed into law, SF 2403 that includes the provisions for an ethanol tax differential that will provide larger incentives for ethanol blends of E15 and above.

The Iowa Legislature also approved funding for the Iowa Renewable Fuels Infrastructure Program (RFIP) at $3 million as they have in years past. Gov. Reynolds also allocated $7 million from the federal grant under the Coronavirus Aid, Relief, and Economic Security (CARES) Act for biofuels infrastructure. Between these two programs, Iowa Corn worked with fuel retailers across the state to submit roughly 200 applications to upgrade fueling systems to offer E15 and/or E85.

Secretary Perdue, U.S. Senator Joni Ernst, Iowa Governor Kim Reynolds, and Iowa Secretary of Agriculture Mike Naig, attended a conservation field day sponsored

by Iowa Corn in September. Allowing them to survey the drought and derecho crop damage in Iowa and giving Iowa Corn farmers the chance to tell their concerns and story first hand to elected officials.

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“

ICPB worked with USGC to meet the growing domestic demand for hand sanitizer in South Korea, which is now 2.6 million gallons per month — more than 12 times pre-pandemic levels.

”

20.9 MILLION BUSHELS IN CORN EQUIVALENT for industrial uses from January to July 2020.

UP NEARLY 53% year over year.

Iowa Corn encouraged Sen. Joni Ernst and Sen. Chuck Grassley to push for ethanol infrastructure funding.

The USDA made $86 million available for ethanol fueling infrastructure through their implementation of the Higher Blends Infrastructure Incentive Program (HBIIP). Iowa Corn worked with many Iowa fuel retailers to assist them in the grant writing and application process. In total, Iowa Corn’s work resulted in upgrades to offer E15 and E85 at more than 100 dispensers and 20 under-storage tanks at 38 sites in Iowa.

Iowa Corn requested assistance for our farmers through our congressional leaders to make sure the USDA received money to help the mitigate negative economic impacts on farmers in 2020, and Congress included the funding through the CARES Act as requested. Iowa Corn also worked on securing money for Coronavirus Food Assistance Program (CFAP) 1 and CFAP 2 payments and securing funding for Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) payments this past fall.

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As the type of ethyl alcohol typically used for hand sanitizer became in short supply or unavailable due to the global surge in hand sanitizer demand, Iowa Corn stepped up to show the positive impact the ethanol industry could have in hand sanitizer.

Our argument was based off the Canadian government, which provided the necessary regulatory flexibility to allow “technicalgrade” ethyl alcohol to be used for hand sanitizer, freeing up a substantial supply of high-quality alcohol that will help meet increased demand for hand sanitizer and keep costs down. We asked that the U.S. Food and Drug Administration (FDA) adopt the same flexibility as the Canadian government, allowing U.S. producers (who were prevented from doing so by ambiguous and unreasonable FDA guidelines) to help combat the spread of COVID-19. Because of our influence with the governor, she asked the president to allow ethanol to be used in hand sanitizer.

In the international marketplace, ICPB supported work through the U.S. Grains Council (USGC) to open the Indonesian market to U.S. ethanol, with the country now allowing imports of E10. This move holds the potential for an additional 290 million gallons in ethanol demand, or more than 100 million bushels of corn demand.

ICPB worked with USGC to meet the growing domestic demand for hand sanitizer in South Korea, which is now 2.6 million gallons per month – more than 12 times prepandemic levels. The country had already been importing U.S. ethanol for industries uses like windshield wiper fluid and disinfectants, but increased demand has led to more purchases.

South Korea imported 58.9 million gallons of U.S. ethanol (20.9 million bushels in corn equivalent) for industrial uses from January to July 2020, up nearly 53% year over year.

Iowa Corn supported two major international corn product conference this year, the Virtual Ethanol Buyers Conference (VEBC) with USGC, and the Renewable Fuels Association (RFS) and Growth Energy and the Virtual Grains Exchange with USGC. The educational conferences included nearly 1,400 attendees combined. Attendees participated in educational sessions, one-on-one meetings and virtual team visits arranged as part of the event.

While 2020 brought on many difficult challenges, it also provided opportunities. We at Iowa Corn continue to work hard to uncover these openings to support our corn farmers. We remain optimistic that 2021 will provide even more opportunities for long-term profitability as we continue to work for and support Iowa’s corn farmers.

Iowa Corn, with NCGA and national ethanol partners, joined a coalition of stakeholders to commence testing on E15 with the California Air Resources Board (CARB) to approve E15 for use in the California market.

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I O W A

C O R N

P R O M O T I O N

B O A R D

2020 ICPB CHECKOFF INVESTMENTS You could say 2020 was not the most ideal year. Between a worldwide pandemic and multiple growing season challenges, Iowa corn farmers have experienced true hardships. Despite the continued trade wars and drought conditions in the majority of the state, there are still some things to celebrate from the past year that were monumental for Iowa corn farmers. Although it may be hard, let’s focus on the positives as they are proof that your hard work and the investment you’ve made in our industry are paying off.

Both ethanol and corn for feed faced major challenges in 2020; however, the Iowa Corn Promotion Board (ICPB) was able to shift programming to make meaningful progress despite these headwinds. Iowa motorists have shown that if E15 is offered, they will choose it, as is evident by E15 coming off three consecutive years of record sales in 2017, 2018 and 2019. To capitalize on this momentum, the Iowa Corn Growers Association (ICGA) focused on pushing the envelope on E15 availability in 2020 both in Iowa and in major markets around the country. ICGA worked to leverage the U.S. Department of Agriculture’s (USDA) $100 million infrastructure grant program and our state’s renewable fuels infrastructure program to, successfully assisting retailers on more than 200 grant applications designed to increase the availability of E15/E85 in our state. Additionally, ICPB partnered with a coalition of agriculture, ethanol and automaker stakeholders to commence a testing program on E15 in conjunction with California regulators to lift the state ban on E15 sales — an important step in opening the nation’s largest fuel market to E15.

In the international space, though ongoing global trade disputes and the global COVID-19 pandemic has slowed growth opportunities in global corn product sales, ICPB continued to work with the U.S. Grains Council (USGC) and U.S. Meat Export Federation (USMEF) on your behalf to protect and expand overseas markets. While the firsthand experiences in the tractor cab were unable to take place, ICPB and its partners shifted to virtual visits for nearly 300 international corn product buyers in 2020. Even though corn and ethanol exports are down double digits through August of this year for many reasons, positive developments in the international arena continue. For instance, in Southeast Asia, Indonesia announced in early 2020 it is now allowing imports of E10, or fuel blended with 10% ethanol, and Vietnam reduced its tariff rate on ethanol imports. Combined, these two announcements alone hold the potential for an additional 130 million bushels in corn equivalent exports of ethanol. When it comes to corn-fed meats, while U.S. beef exports are down only slightly by 9% in value and 8% in volume, exports of U.S. pork are up 17% in volume and 18% in value through August of 2020.

MARKET DEVELOPMENT

41%

EDUCATION

27%

RESEARCH

21%

ADMINISTRATION

10%

I can agree, we have certainly had better and more lucrative years than 2020, but I personally choose to look forward to the future and strive to make 2021 better. There is a lot of potential for Iowa’s corn markets, and as we continue to raise good crops, ICPB is working hard to ensure we have the market opportunities for our operations and families. ICPB will continue to work hard for all of Iowa corn farmers and is looking forward to what 2021 will bring.

Greg Alber President, ICPB

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MARKET DEVELOPMENT

TRADE IN A VIRTUAL WORLD

“The teams visiting Iowa are eager to not only see the state of corn harvest there, but also are keenly interested in getting a peek inside major production facilities so they can see for themselves just how high quality Iowa corn is. By allowing them to do so, we can strengthen the relationships between U.S. farmers and these buyers, and we appreciate ICPB’s assistance in this process.”

ICPB invests checkoff dollars in USGC because

D

ue to travel restrictions and other hurdles in 2020, the Iowa Corn Promotion Board (ICPB), along with our partners, is being creative in bringing the farm experience to buyers around the world.

As part of the U.S. Grains Council’s (USGC) Virtual Grain Exchange in Oct. 2020, the Iowa Corn Promotion Board (ICPB) hosted virtual meetings between farmers and customers from Mexico, Malaysia, Lao, Cambodia, Myanmar and the Philippines. The topics discussed ranged from this year’s growing season, corn quality and the condition of this year’s crop to grain storage and handling, dried distillers grains (DDGs) usage and production and overall white corn production. Along with partners from USGC, Iowa Corn

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staff, ICPB Director Rod Pierce and ICPB Industry Liaison Ryan Franklin, a Senior Merchandiser with Consolidated Grain and Barge (CGB) participated in the October virtual meetings.

“I’ve been farming for 40 years and one of my favorite aspects about farming is showing and explaining my operation to export buyers,” said Pierce. “The virtual meeting environment did not stop participants from engaging and learning about our products.”

In a typical a year, customers from all over the world would have a true Iowa agriculture experience allowing them to step foot on Iowa soil and speak directly with Iowa corn farmers and members of the value chain. Because of the pandemic, face-to-face experiences were

not possible, but these virtual meeting allowed Iowa corn farmers and staff to keep the conversation going with corn buyers. And while those firsthand “see it, touch it, taste it” experiences leave a strong, lasting impression, these virtual events allowed many more individuals to participate and hear messages from Iowa corn farmers. In fact, a typical trade team visit is often comprised of roughly 12 - 18 buyers, but the virtual meeting on corn and DDGs with representatives from Mexico’s grain purchasing and fed milling industry had more than 200 customers participate.

“Even though trade teams are virtual this year, the fact remains that all end users want to get a good look at the entire U.S. agricultural value chain when making decisions about U.S. grains,” said Ryan LeGrand, USGC president and CEO.

“

conversations like these are incredibly valuable to building demand for corn and corn products. This partnership allows Iowa Corn farmers to have a seat at the table when protecting and expanding markets around the world. USGC acts as a bridge between U.S. suppliers and international customers by maintaining our leadership role in the global export market. It works to promote the value of trade and continuous

export expansion, advance food security through trade, serve as a resource for advancing trade policy and provide continual customer education on grain supply and reliability. Like many commodity organizations, we are all working hard to keep these relationships and experiences alive in a virtual world, and our efforts in partnership with USGC are working to keep Iowa’s corn products top-of-mind around the globe.

I’ve been farming for 40 years and one of my favorite aspects about farming is showing and explaining my operation to export buyers.

The virtual meeting environment did not stop participants from engaging and learning about our products.

— Rod Pierce, ICPB Director

”

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RESEARCH

COVID CROP ANALYSIS A

s part of the National Corn Growers Association’s (NCGA) efforts to better understand the economic impact of the global pandemic on the corn industry, they invested in the “Impacts of COVID-19 on U.S. Corn Revenue for the 2019 through 2021 Marketing Years” analysis report. This analysis was conducted by Dr. Gary Schnitkey of the University of Illinois using projections from 2019, 2020 and 2021 for pre- and post-COVID scenarios while taking into consideration previous analysis built on market numbers to date and estimated state-level impacts. His findings included total revenue from crops, commodity title program payments, crop insurance, Market Facilitation Program (MFP) payments and Coronavirus Food Assistance Program (CFAP) payments. Below are some of the analysis findings. You can read the full report at www.ncga.com.

Comparison of Pre- and Post-COVID Scenarios Indicate: • Price declines associated with 2019 crop will result in revenue losses. Even after accounting for increases in the 2019 commodity title and CFAP payments, total revenue declines by $15 per acre on the 2019 crop.

• For 2020, a post-COVID price of $3.20 per bushel and a national yield of 179 bushels per acre result in crop revenue of $573 per acre.

Crop revenue of $573 would be $49 per acre below the average crop revenue from 2014 to 2019. A crop revenue of $573 would be the lowest since 2006.

• Price Loss Coverage (PLC) payments on the 2020 crop would result under the post-COVID price scenario. Even after accounting for PLC payments, post-COVID revenue projections are well below the 2014-2018 average for total revenue. Without additional federal aid, revenue and incomes will be extremely low for corn farmers in 2020.

• Low revenues likely will persist into 2021, particularly if trend yields or higher occur in 2020, leading to large ending stocks for the 2020 marketing year. Corn farmers will find 2021 a challenging income year under likely supply/demand scenarios.

Corn Price: Pre- and Post-COVID As is widely known, the coronavirus and resulting COVID-19 control measures have caused a sharp drop in corn prices. For the pre-COVID price scenario, MYA prices are $3.85 per bushel for 2019, $3.70 for 2020 and $3.60 for 2021. Based on prices on Chicago Mercantile Exchange (CME) contracts, MYA prices had to be re-estimated. The post-COVID prices are $3.50 per bushel for 2019, $3.20 for 2020 and $3.40 for 2021. These prices are down from pre-COVID price estimates by 9.1% in 2019, 13.5% for 2020 and 5.6% in 2021. Prices are roughly consistent with a major recession occurring because of COVID-19 control measures but predicated to be a U-shaped recovery. These prices will continue to be low into 2021 because of large projected stocks at the end of the 2020 marketing year. Ending 2020 stocks are projected at 3,318 million bushels. The 3,318 million bushels would be a record stock level for the end of a marketing year; the next highest was 2,220 million bushels in 2019. The average ending stock from 2010 to 2019 was 1,600 million bushels, less than half the size of the projected 2020 stock level.

2021 Revenue Like mentioned previously, price declines are projected to continue into 2021. Pre-COVID, total revenue in 2021 was projected at $670 per acre. Post-COIVD, revenue is projected at $638 per acre. This revenue is composed of $612 of crop revenue and $26 per acre of PLC payments. Again, the $638 revenue projected for 2021 would be below the 2012-2018 average of $660 per acre.

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EDUCATION

HOW CAN IOWANS SUPPORT LOCAL FARMERS? How Can Iowans Support Local Farmers?

Iowa Corn Promotion Board (ICPB) is excited to kick off our new “Support Local Corn Farmers” campaign, focused on promoting YOU! We know Iowans truly are stronger together and work tirelessly to close the gap between Iowa corn farmers and consumers. We are sharing with Iowans three everyday steps they can do to support local farmers in their area. There are many things you can do to show farmers support, but by pushing these three, messages we hope to show Iowans how easy it truly is.

Follow Iowa Corn on Facebook, Twitter and Instagram to help spread the word about supporting local farmers like you by liking, sharing and commenting on these posts. Interested in being featured? This campaign is important to us because it truly shares our grassroots farmers’ passion for what you do. Help us tell your story to your neighbors, family and friends. Send a photo of yourself, farming operation or family to vbutt@iowacorn.org with a small bio about yourself and we will do the rest. We truly are stronger together; stand up and tell your story today!

You may have heard our new “Support Local Corn Farmers” ads during the Iowa and Iowa State football season on the radio and all over social media. This is where you come in!

Buy Corn-Fed Meat, Dairy and Eggs from the Grocery Store Corn production and the livestock industry go hand in hand.

Not only do we invest check-off dollars in the U.S. Meat Export Federation (USMEF) to support beef and pork exports, we also support producers on Iowa soil. Iowa livestock consumes 320 million bushels of corn, whether that be direct consumption or eating corn through dried distillers grains (DDGs). This campaign focuses on reminding Iowans to fill their grocery cart with meat, dairy and egg products as there is a good chance that the food you purchase is locally grown and produced right here in Iowa.

Fill Up Your Bottle with Safe Drinking Water from the Tap “Farmers care about the water we share,” is a message we have pushed for many years now. This campaign is an extension of this statement as it encourages all Iowans to trust the water that comes from the tap. It means they have confidence in their local farmers to take careful measures to keep drinking water safe for their neighbors and their own family. Not only do farmers preserve the water but also the land, another focus we will push through this campaign.

Ethanol, corn-fed livestock, and conservation are at the core of this campaign. Over the next year Iowans are encouraged to...

Fuel Their Vehicles with E15/Unleaded88 Iowa corn farmers know how important the ethanol industry is to their bottom line. Fifty-seven percent of Iowa corn goes to ethanol production, so it is no surprise Iowa is the nation’s leader in ethanol. Iowans need to know how reliable, clean, homegrown, affordable and readily available E15/Unleaded88 are. These are all points we will push through this campaign to encourage Iowans to use higher blends of the cleaner burning ethanol fuel.

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At Iowa Corn, we do many things. We develop and defend markets for corn across the globe. We fund research that unearths new uses for corn.

And we spearhead education and promotional efforts to communicate the many benefits and uses of corn and corn products. Why do we do what we do? Because we believe in the corn growers of Iowa. What corn farmers do impacts people worldwide, and it’s our mission to support corn farmers’ interests. We’re here to work for the corn farmer.

And we’re proud to do it.

TO UNLOCK THE POTENTIAL OF CORN IN A SUSTAINABLE MANNER TO MEET THE GLOBAL NEED FOR FOOD AND ENERGY PUBLISHED JANUARY 2021

FOR MORE INFORMATION CONTACT: Iowa Corn | 5505 Northwest 88th Street | Johnston, Iowa 50131 | 515-225-9242 | corninfo@iowacorn.org