Tariffs have been the talk of the town in Washington over the last several weeks and their impact on the corn economy is an issue my team and I have been concerned about as our farmers face high input costs and lower corn prices. But President Donald Trump’s laser focus on trade has also created opportunities for new trade deals that may open new markets that can benefit farmers and rural America.
In a positive sign of forward momentum, the president recently announced a trade agreement that will increase access for American agricultural products to the United Kingdom, including ethanol. During the announcement, Trump officials indicated that tariffs on U.S. ethanol shipped into that country will be reduced to zero. According to the
White House fact sheet, this opens up an opportunity of up to $700 million worth of increased U.S. ethanol exports.
The president has indicated that he is not stopping with the United Kingdom. He’s focused on deals with other countries and has recently engaged in talks with the Indian government, which is a positive development as the country, with its 1.4 billion consumers, would be a major market for America’s corn growers.
India has long been elusive to U.S. corn growers who have faced many restrictions on exports to the country, particularly with shipments of biotech corn and corn ethanol and its co-products.
Recently, NCGA President Kenneth Hartman Jr. took part in an
online press conference in which he talked about India’s trade barriers and highlighted the benefits of accessing the country’s market. As he told reporters, India is one of the largest market opportunities for U.S. corn exports, has the world’s largest dairy herd and possesses an ambitious ethanol blending program in need of corn.
The economic boon that such a market would provide corn growers and rural communities would help offset the potential problems growers would experience if retaliation occurred from other countries.
NCGA’s economists have run the numbers, which show the economic benefits of making inroads into the Indian market. Here is what the data tell us:
- If the Indian government were to drop its restrictions on genetically modified corn, it could open the door to $235 million worth of U.S. exports each year.
- If the United States were able to supply India’s sustainable aviation fuel market, it would represent $434 million opportunity for U.S. corn farmers in the first year of access.
- Finally, if dried distillers grains were imported into the country, it would result in $13.75 million in imports in year one, growing to an estimated $137.5 million within five years.
Our public and private drumbeat continues as we work to support the administration’s efforts while ensuring our products are front and center during negotiations. We are not stopping with the United Kingdom and India. We plan to advocate for additional agreements with countries like Vietnam and Kenya, as well. You can follow our efforts by visiting
www.ncga.com and support our work by joining your state corn grower organization.
We look forward to updating you on the success of our work. Here’s to unlocking new markets!
McNitt is vice president of public policy at the National Corn Growers Association.
