Phase 2 of study shows Iowa farm income could fall by $1B annually without CCS pipeline

In Iowa, Decision Innovation Solutions (DIS) released phase two of its deep dive into the ramifications if Iowa prevents carbon capture and sequestration (CCS) projects from moving forward, finding that farm income could drop by more than $1 billion annually.

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.