Phase 2 of study shows Iowa farm income could fall by $1B annually without CCS pipeline
March 21, 2023
| Meghan Sapp
The study found corn leaving Iowa without added value would jump from 6% to 44% by the end of the decade. Regions of the state will experience up to a 75 cent per bushel reduction in local corn basis prices, and the typical ethanol plant premium of 16 cents per bushel would disappear.
As a result:
· Lower basis would cause the profit on corn production to plummet on average by 85% compared to the status quo.
· Farm income would drop $43,000 for a typical 1000-acre farm split 50/50 between corn and soybeans.
· Statewide net farm cash income would decline by $1.1 billion per year.
Category: Fuels