Iowa Renewable Fuels Association releases carbon pipeline study findings
Iowa farmers could lose out on over $1 billion annually if carbon capture and sequestration projects are halted, according to a study commissioned by the Iowa Renewable Fuels Association.
Executive Director Monte Shaw says the study conducted by Decision Innovation Solutions found that a ban on carbon pipelines would result in 44% of Iowa corn leaving the state without added value by the end of the decade.
“This would eliminate 85% of that positive margin on corn,” Shaw said. “I don’t want to take an 85% pay cut and I don’t think we should ask farmers to do that as well.”
The study also found farm income would drop $43,000 for a 1,000-acre farm split 50/50 between corn and soybeans, as well as a decline in statewide net farm cash income by $1.1 billion per year.
He says the association is gathering this data as the Iowa Legislature considers bills that would prevent similar projects from moving forward.
“We are now looking at Iowa being the only state on the map where there is still an active effort to derail these projects,” he said.
Shaw says Iowa’s ethanol production will become noncompetitive without investments in carbon sequestration projects.