2023 was a record year for US corn growers, creating a surplus in the market. As farmers brought in the “better than expected” harvest, they also watched as corn prices went from $6.60 in April 2023 to around $4.50 in November.
As producers look for ways to reduce the supply to elevate prices, David Zimmerman, President and CEO of Big River Resources says higher ethanol blends is part of the solution.
“The ethanol supply and demand scenario are very, very heavy as well right now. Here we are, our blend percentages are about 10.4% across the pool nationwide,” says Zimmerman. “There’s no reason that couldn’t be at 15%. That would provide a boost to the corn farmer it would provide a boost and allow us to choose to chew through some of this excess ethanol inventory that we’re sitting on right now. “
The EPA has issued a waiver for summertime E15 sales for 2024. Eight Midwest states, including Illinois, have been approved for year-round E15 sales beginning the summer of 2025.
