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U.S. Corn Supplies Surge Amid Price Drops

U.S. Corn Supplies Surge Amid Price Drops


By Jamie Martin

The latest USDA report confirms that U.S. farmers produced a record corn crop in 2025, exceeding 17 billion bushels. While the harvest reflects strong yields, it has also led to rising corn inventories and falling prices. Corn stockpiles are projected to reach their highest level in eight years, while prices are expected to drop to levels not seen in six years.

“Today’s surprise USDA report serves as a sobering wake-up call about the state of farm economy and underscores the need for lawmakers to take immediate action to expand markets for America's corn growers,” said RFA President and CEO Geoff Cooper. “The fastest and easiest way to shore up the growing supply-demand imbalance in the corn market is to permanently remove the summertime barrier on E15 sales and eliminate obsolete fuel retail infrastructure rules. These decades-old regulatory barriers are literally choking off demand and shortchanging America’s farmers.”

Farm and biofuel leaders say the report sends a clear signal about the need to strengthen demand. With supply continuing to grow, many producers face lower incomes and tighter financial conditions. Industry groups believe policy action can help prevent a deeper economic slowdown in farm communities.

Expanding access to higher ethanol blends is viewed as a key solution. Supporters say allowing E15 fuel to be sold year-round across the country could create long-term demand for billions of additional bushels of corn and other feedstocks. Consumers could also benefit from lower fuel prices at the pump.

Several policy steps have been proposed to support this goal. These include passing legislation to allow permanent year-round E15 sales, simplifying regulatory requirements for fuel retailers, and updating older rules that add unnecessary costs to ethanol production. Industry groups also emphasize the importance of fully enforcing Renewable Fuel Standard volume targets.

Past experiences show that broad exemptions can weaken biofuel demand during times of surplus. Leaders caution that avoiding such outcomes is critical as supplies continue to build.

“By taking these straightforward actions, Congress and the administration can reinforce the strength of American agriculture and help avert a looming crisis in farm country,” said Cooper. “We’re calling on policymakers to act swiftly to remove barriers to expanded ethanol use and open new markets for U.S. farmers.”

As farmers plan for the upcoming planting season, agriculture and biofuel organizations are urging swift action from lawmakers. They say modernizing fuel policies could help balance supply and demand, strengthen rural economies, and open new markets for U.S. farmers while supporting cleaner fuel options nationwide.

Photo Credit: gettyimages-songdech17


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