By Andi Anderson
The agriculture industry is expected to see significant benefits from the Summit Carbon Solutions pipeline project.
“This project has been about responding to new markets around the world,” said Bruce Rastetter, Chairman of Summit Ag. “We literally have corn and almost all commodities, below the cost of production, because we have proven that we can produce more than the world can consume. The surpluses continue to grow, so we need to continue to add value out of those crops.”
Global markets now demand more value-added agricultural products, commodities like corn, soybeans, and wheat are often produced at costs higher than their current market prices due to ongoing surpluses. The project is expected to add substantial value to these crops by increasing demand for ethanol, which could use an additional 700 million bushels of corn annually.
Summit Carbon Solutions currently has partnerships with 57 ethanol plants involved in the project. These plants are anticipated to earn between 30 to 35 cents more per gallon of ethanol, translating to about an extra dollar per bushel of corn. This increase could provide a financial boost to farmers and ethanol producers alike.
Corn has a significant impact on global commodity markets, underscoring how the project’s success could enhance the overall agricultural economy by stabilizing and expanding market demand.
Photo Credit: gettyimages-ygrek
Categories: Iowa, Crops, Corn, Soybeans, Wheat