• Farmers respond to incentives, and there’s an incentive right now to produce.
Despite reports of tight corn stocks, National Corn Growers Association CEO Rick Tolman reported that, in the long-term, corn growers will continually be able to not only meet, but also surpass, increasing demand for food, feed and fuel.
“Still our biggest challenge is that we can over-produce the market,” Tolman said. “Farmers respond to incentives, and there’s an incentive right now to produce. I can guarantee we’ll have a big crop in 2011.”
Tolman presented this view, formed from both hard data and personal interviews with growers, to the National Ethanol Conference last week. The conference, which focuses on current and future issues within the ethanol industry, included Tolman’s presentation in a panel discussion of market forecasts and their implications for the biofuels industry. Oil Price Information Service Chief Oil Analyst Tom Kloza also gave his views on the oil industry to concerned stakeholders from all sectors of the industry.
While his co-panelist stressed the influence political instability in the Middle East has on oil prices, Tolman explained that today’s corn supply situation will not be lasting. Instead, he noted that current planting conditions suggest a bumper crop in 2011.
“We had a great fall, farmers got their crop out of the field, they did their fall tillage, they did their application of inputs,” he said. “We’re coming into the season in about as perfect a condition as you can have,” he said, adding that odds favor significant yields in 2011 and a larger carryover in 2012.
Speaking of the meeting, Tolman noted, “I was quite impressed with both the size and diversity of the turnout. From ethanol producers, to their suppliers and many other tangential stakeholders, attendance reassured us that ethanol is a vibrant, growing, solidly-based industry.”
To listen to a full interview with Tolman following the meeting, click here.