The fundamentals of any good business model look for ways to increase demand for a product. In Iowa, the Iowa Corn Promotion Board represents thousands of farmers to create an economic climate in which the Iowa corn industry will be successful through market development, research for new uses and public education about corn in all forms. 

“We work to defend our current markets, while simultaneously looking for new market opportunities,” says ICPB President Duane Aistrope, a farmer from Randolph in southwest Iowa. “Half of the ICPB budget goes to building export markets, livestock production, and offering consumers higher blends of ethanol at the gas pump. These demand-building efforts remain key to stopping the red ink and bringing vitality back to Iowa’s rural economy.”

Checkoff funds matched by government
To see how markets work and to talk face to face with customers around the world, Iowa farmers from ICPB, along with the U.S. Grains Council and the U.S. Meat Export Federation, have boots on the ground in major export markets.

Checkoff funds are matched by government funds, such as from USDA’s Market Access Program and USDA Foreign Market Development, to support international market development programs for both USGC and USMEF.

Iowa Corn board and committee members participate in several USGC trade missions each year, traveling to thriving corn markets around the world. People want to do business with individuals and organizations they know and trust, and these missions do just that: helping build relationships with international buyers.

The trade missions focus on topics from crop progress and dried distillers grain to red meat exports. “ICPB farmer-leaders also host trade teams visiting Iowa to learn more about the corn and meat produced here,” Aistrope says.

USGC builds relationships to increase U.S. exports of corn, ethanol and dried distillers grain with foreign trading partners. This includes everything from putting foreign buyers in touch with U.S. sellers to educating regulators about how to use ethanol fuels in their countries. For example, global markets are responding to USGC’s efforts to expand U.S. ethanol use worldwide by demonstrating it to be a reliable and affordable source of octane.

Ethanol exports set record
U.S. ethanol exports set a record in 2016-17 at 1.37 billion gallons (488 million bushels in corn equivalent) — a 34% increase year over year — exported to 76 countries. Brazil was the year’s top buyer, setting a new export record with 499 million gallons (178 million bushels in corn equivalent) in purchases. USGC has also worked with livestock farmers in foreign countries to show them the benefits of feeding DDGS.

“If we want to continue to enhance profitability for farmers, we must continue to work with organizations like the U.S. Grains Council to create new demand for corn through value-added products like ethanol,” Aistrope says. “Building demand for ethanol creates additional markets both domestically and internationally for our corn crop.”

Demand for ethanol at home
Domestically, ICPB’s ethanol efforts in the U.S. target consumers, gas retailers and corn farmers to share the benefits of higher blends of ethanol. Introducing higher ethanol blends, such as E15 and E85, requires customer education to build demand for American-made ethanol. ICPB supports retailer grand openings to educate consumers and drive traffic to new retail locations. Here are three other programs ICPB helps fund to build ethanol demand.

• Retailer Outreach Program. ICPB has for the last seven years supported the Retailer Outreach Program which has resulted in many new retail locations offering E15 to E85. The program makes fuel station, owners aware of state and federal grant programs and encourages retailers to provide higher ethanol blends by presenting the benefits of offering customers more fuel choices, adding a helpful boost to their bottom line.

• Auto Ethanol Work Group. ICPB, alongside other corn states, ethanol producers, engine manufacturers and fuel experts, participates in the Ag Auto Ethanol Work Group. They design future engine technology that will meet increasingly stringent EPA standards and result in a more efficient internal combustion engine.

• Clean Air Choice. In 2018, ICPB is expanding its Clean Air Choice campaign with the American Lung Association to help drivers understand the correlation between ethanol and lung health. This will include a driver’s education initiative, providing an educational video and information on using higher blends of ethanol to high schoolers. Also, the Clean Air Choice campaign will include advertorials in major Iowa daily newspapers.

Checkoff at work
“The Iowa Corn Promotion Board works to develop and defend markets, fund research, and provide education about corn and corn products to create opportunities for long-term Iowa corn grower profitability,” Aistrope says.

ICPB not only works for corn producers, but also “it works to improve the ag industry as a whole,” he adds. “Even though you may not always see promotion activities in your area, your checkoff dollars are hard at work. ICPB is investing checkoff dollars from a local to a state, national and international level to create profitability for Iowa’s corn farmers. These efforts flow back to benefit you and other farmers in your district.”

For more information about ICPB, its programs or the farmer-leaders who serve on its board, visit iowacorn.org.

Source: Iowa Corn Promotion Board