EasternIowaFarmer_Fall2023

FEDERAL DEPOSIT INSURANCE CORPORATION
THE ENERGY ISSUE
elevator, I say ‘Is your diet short of starch?’
No one ever says yes,” he said.
For Iowa, the top corn-producing state,
ethanol production is key to fueling demand
for the commodity, and, in turn, positively
affecting the price per bushel. While
there’s not an ethanol plant in Eastern Iowa
(the region already has such ready-made
markets as river terminals, ADM in Clinton,
and Nestle Purina in Davenport) the
renewable fuel’s economic impact on the
local economy is significant, Bowman said.
Iowa’s 42 ethanol plants used 1.83
billion bushels of corn to produce a record
4.5 billion gallons of ethanol in 2022, more
than any other state. That, along with the
349 million gallons of biodiesel produced,
accounted for nearly $7.2 billion of Iowa’s
GDP and some 57,000 jobs, according to
the Iowa Renewable Fuels Association,
an organization that represents the state’s
liquid renewable energy industry.
Ethanol as a transportation fuel was
developed more than 40 years ago. It’s
basically ethyl alcohol made from corn,
the same kind of alcohol used in beverages
you can pick up at the neighborhood liquor
store. More U.S. corn goes to ethanol
production than any other use, about 40%;
36% is used for cattle feed and the rest for
food.
“What we’re talking about here is value
added, and farmers understand that,” Bowman
said. “For years, we took the corn.
We fed it to livestock, and we made more
money than we would have if we sold that
grain. That’s value-added. Ethanol is the
same way.”
The political landscape continues to be a
bit of a rollercoaster, Bowman said.
“It’s been a pretty wild ride for several
decades,” he noted.
One of the continuing areas farmers
are watching are what happens with RIN
waivers. Those waivers allow oil refiners
to violate ethanol blending requirements
under Renewable Identification Numbers,
which are used to monitor compliance with
federal Renewable Fuel Standards.
They’ll also be hoping to make inroads
into the sale of E15 throughout the year,
which is banned in some places with smog
problems and available year round in
others.
They’ll also be monitoring what happens
with proposed pipeline projects that would
transport carbon dioxide from ethanol,
fertilizer and other ag-related industries
and sequester it underground. If those
pipelines come to fruition, they could help
lower carbon emitted from ethanol plants,
but they are facing pushback on landowner
rights and safety issues.
Bowman talks with enthusiasm about
some of the research and development
going on in the corn and soybean industries,
including burning 100% ethanol fuel
in diesel motors, as well as using plants for
safe, sustainable aviation fuel.
One of the key things he likes to remind
people of is the unlimited potential of
renewable fuels.
“This is really an infant industry.
They are making huge improvements,” he
said. n
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we’d love the opportunity to earn your business.
Pictured:
Jim Thines,
Susanne
Snead,
Tony Portz,
Jessica
Nicely, Joel
Ahrendsen
114 W. Main St.
Wyoming, IA
(563) 488-2211
Four convenient locations to serve you:
321 Jackson St
Olin, IA
(319) 484-2247
101 W. Broadway
Oxford Junction, IA
(563) 826-2231
www.csbwyoming.com
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Maquoketa, IA
(563) 652-2211
56 EASTERN IOWA FARMER | FALL 2023 eifarmer.com