AUDIO: Jeff Broin, POET
A common concern, voiced throughout rural America, is access to foreign markets. Concerns heighten as the United States enters a trade war with China, following President Donald Trump?s decision to impose tariffs on imported steel and aluminum products.
China imposed a 25% tariff on United States pork exports and 15% tariff on United States ethanol exports. The country last week threatened to impose tariffs on United States corn, soybeans and frozen beef exports, among many other products.
A biofuels executive shares his perspective on foreign agricultural markets. He talks in-depth on their role in addressing large ending stocks and adding profitability back to farming operations.
Jeff Broin serves as chairman and CEO of POET. Broin says, ?Exports are not the answer to America?s problems.?
?Today, there are 21 billion bushels of surplus grain stored around the world; the largest in the history of the world. It?s increasing at almost unprecedented rates, with no end in sight. Other countries are producing more commodities all the time. The United States is producing more commodities all the time with yield increases. If you look at history, none of the other uses of grains have changed, they?ve been basically flat,? Broin said. ?Exports, for example, haven?t changed in 35 years, so don?t let anyone tell you we?re going to export our way out of this.?
Broin, a firm believer of biofuels, says E15 presents opportunities for corn usage and increased profits. He adds, ?biotechnology, biofuels in particular, are uniquely positioned to give rural America the economic boost it needs to regain prosperity and financial stability.?
?With E15, we can use another two billion bushels of corn a year,? Broin said. ?That?s enough to bring down the worldwide surplus and actually increase prices for the farmer. Farmers need to be looking to higher biofuel blends. As yields go up in the future, we may need to go beyond that. Right now, we need to move to E15 to use up two billion bushels of corn to bring down worldwide surpluses and bring up worldwide prices,? Broin said.
