While most of the corn produced in Kentucky stays in the state to be processed for feed, food, fuel, and bourbon, exports are still a critical factor in the economic success of Kentucky’s corn farmers.
The Kentucky Corn Promotion Council (KYCPC) invests significant checkoff resources with the U.S. Grains Council (USGC) to promote international trade because trade drives demand and demand drives price.
Last week, USGC received notice of additional funding from the U.S. Department of Agriculture (USDA) under its Regional Agriculture Promotion Program (RAPP), which will disperse $17 million to the USGC for use in developing markets to build U.S. agriculture exports. Investments from KYCPC facilitate cost-sharing for programs like this one from the USDA.
With more than 95% of the world’s population living outside the United States, world markets are a growing opportunity for Kentucky corn farmers. Here’s why:
1. Rivers are Kentucky’s Competitive Advantage
With 1,590 miles, the Bluegrass State ranks fourth in the nation for navigable waterways – a vital asset for access to export markets. In addition to the Ohio and Mississippi Rivers in-state, Kentucky has access to the Tennessee, Kentucky, Cumberland, and Green Rivers. Corn and other agricultural products worth $763 million are shipped to other countries. 32% of Kentucky’s crop production is exported out of state via Kentucky’s rivers.
2. Trade Agreements Make an Impact
Nearly 87.1 metric tons, or 3.4 billion bushels, of U.S. grain in all forms were exported in the 2022/2023 marketing year. And U.S. corn exports totaled 42.1 million metric tons. The U.S. has trade agreements with 20 countries – creating a big impact for Kentucky farmers. The USGC identifies Mexico, Japan, Colombia, China, and Canada as the top five markets for U.S. corn. Kentucky Corn also partners with the U.S. Meat Export Federation (USMEF) and the USA Poultry and Egg Export Council (USAPEEC) to grow demand for grain and meat markets.
3. Ethanol’s Growing Market
Ethanol is a major demand segment for Kentucky-grown corn. Nationally, ethanol exports total 1.25 billion gallons, equivalent to 423 million bushels, worth $3.5 billion. 77 countries purchase ethanol from the U.S. and USGC identifies Canada, India, the United Kingdom, the European Union, and Columbia as the top five markets for U.S. ethanol. Recently, a new E20 policy in the Philippines will increase its potential ethanol demand by 86 million gallons. In 2023, the Philippines imported 55 million gallons of ethanol from the U.S., accounting for 85% of all ethanol imports and 40% of the Philippine’s total ethanol demand. New access to markets like the Philippines is a prime example of the opportunities available to U.S. corn farmers.
Kentucky Corn continues to promote international trade and develop foreign markets for Kentucky corn farmers.
