A new analysis from the National Corn Growers Association (NCGA) shows that if Congress passed legislation allowing for year-round, nationwide access to 15% ethanol blended fuel (E15), corn use for ethanol could increase by 50% at full implementation, supporting a higher market price for corn and energy stability for Americans.

According to the report:
In their October Short-Term Energy Outlook, EIA forecasts finished motor gasoline use at 136 billion gallons for 2025 and 2026. Given current motor gasoline usage, a 1% increase in the national blend rate equates to 1.36 billion gallons of additional ethanol used domestically, or 486 million bushels more corn used in ethanol.

A 5% increase in the national blend rate equates to 6.81 billion gallons of additional ethanol used domestically, or 2.43 billion bushels more corn used in ethanol.

Over the next decade, USDA forecasts corn use in ethanol to stay near the current 5.6-billion-bushel level and near the current share of total corn use while the trend for corn production is expected to continue rising on productivity gains and expanded production area in other nations, which will further depress already below-breakeven market prices.

NCGA officials say without policy change to remove a dated and unscientific regulatory hurdle to allow expanded use of E15, the outlook for domestic corn use in ethanol is stagnant. “Congress could address the economic crisis affecting corn growers by passing legislation that would make higher blends of ethanol readily accessible to all Americans,” said NCGA President Jed Bower. “We urge Congress to act now to make that happen.”