Farmers are Struggling, Washington Should Act

A years-long practice of looking out my farmhouse window and taking satisfaction in a growing crop has recently given way to concern as heavy flooding is taking a toll on my Minnesota corn farm. I am not alone. Farmers across my state and the country are facing frequent and severe adverse weather conditions. And it’s not our only problem.

Corn prices have dropped 37% from last summer’s high, falling below our break-even cost of production. Farmers are faced with a tough choice: sell at a loss or hold in hopes of better prices. That’s not just true for our crop today, but last year’s crop too.

The U.S. Department of Agriculture’s June stocks report shows farmers have 36% more corn in storage than a year ago, the largest level for this time of year since 1999. If farmers had pre-sold those 3 billion bushels at last summer’s high for delivery in July 2024, they would have received over $7 billion more for the same bushels than they would have if they made the sale last week. But last summer farmers were hesitant to commit to sales of a crop as drought threatened production potential. I look at the flooding on my own fields today with the same uncertainty.

To turn the tide and help farmers, we need the nation’s policymakers to act on legislation and regulatory matters that have been bottlenecked in Washington due to partisan conflicts.

Next week, hundreds of corn growers will descend on Washington to meet with officials to talk about these issues and to encourage them to act on our priorities.

Among our specific asks:

• Pass a robust farm bill that addresses our priorities this year. The farm bill is so important to growers on every front. USDA programs are particularly crucial to open and cultivate foreign markets and for a safety net for farmers during hard economic times. While the House Agriculture Committee has marked up its version of the legislation, the Senate committee and both chambers need to come together to pass a bipartisan bill into law.
  
  
• Act to expand markets for corn ethanol. Despite the many environmental benefits of ethanol, recent Biden administration decisions have complicated corn growers’ path to accessing new sustainable tax credits that would lower emissions in the aviation sector. There is also stalled legislation, including the Next Generation Fuels Act and a bill that would allow nationwide access to year-round E15, that would increase consumer access to corn ethanol. And we need to change the law to allow ethanol from corn starch to qualify as an advanced biofuel, which would spur demand both here in the U.S. and abroad. We need forward movement on all these issues.
  
  
• Drop tariffs on key inputs, including fertilizers and herbicides that are critical to planting. NCGA has consistently told the Biden administration that when tariffs are imposed on imports of agricultural products, farmers pay the price. Yet, one federal agency recently sided with a multi-national company after it petitioned the government to place tariffs on imports of phosphorous fertilizers from Morocco. U.S. officials also advanced a petition this year that could lead to tariffs on imports of a much-needed herbicide called 2,4-D. These types of actions drive up prices for farmers, and we need the Biden administration to intervene.
  
  
• Eliminate trade barriers and cultivate new markets. Opening new markets and reducing barriers to existing markets for biofuels is crucial to growing demand for corn growers and other farmers. For example, Congress should pass legislation to renew expired trade programs, like the Generalized System of Preferences and the Miscellaneous Tariff Bill, both of which help to foster international collaboration on market access.

There are many steadfast agricultural supporters in Congress and the administration who work with us on these matters. But we need many more to come on board and, most importantly, do the job of policymakers: listen to their constituents and approve policy that works for America.

That’s the message we’re delivering. The future of rural economies will depend on the response.

Wolle, a Minnesota farmer, is the president of the National Corn Growers Association.