Decline in Farm Income Forecast Shows Need for Carbon Capture Projects

URBANDALE, Iowa (Sept. 21, 2023) – After a recent report from the U.S. Department of Agriculture outlining declining farm income forecasts, the American Carbon Alliance (ACA) today renewed their push for carbon capture and sequestration efforts in order to grow farm incomes and the agriculture economy.

“Thirty years ago, ethanol created domestic demand for corn that completely changed the way farmers in this country can make a living,” said former Congressman Collin Peterson, senior advisor to the American Carbon Alliance. “The future demand for corn is flat, and not only are farmers feeling it, but it’s also proven by this USDA report. We must find new markets for corn produced in this country or future farm incomes will continue to plumet.”

The USDA projects net farm income to decline $41.7 billion or 22.8% year-over-year. Additionally, they say net cash farm income will be down 26.5% and cash receipts are forecast to be down by 4.3%.

“As cars become more fuel efficient, more electric vehicles continue hitting the road, corn exports slip, and corn yields keep rising, farmers need more demand for their product. If we reduce the carbon index of ethanol, there will be incredible demand for new products, such as Sustainable Aviation Fuel, which is a $100 billion market,” said Tom Buis, CEO of the American Carbon Alliance. “The sustainable fuels market is real, and if we don’t produce it other countries will. This is an opportunity of a lifetime, and we cannot afford to let it slip away.”