USDA report highlights rising corn supplies falling prices and ethanol demand needs
A new report from the U.S. Department of Agriculture confirms that farmers harvested a record-large corn crop in 2025, estimated at more than 17 billion bushels. While strong production reflects farm productivity, it has also created market challenges. Corn stockpiles are expected to reach their highest level in eight years, while prices are projected to fall to their lowest point 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 said Renewable Fuels Association (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.”
Industry leaders say the report highlights growing pressure on the farm economy. With supplies rising faster than demand, farmers face shrinking profit margins and increased financial uncertainty. Biofuel groups argue that expanding market opportunities is essential to restoring balance in the corn market.
One major focus is expanding access to higher ethanol blends, especially E15 fuel. Allowing year-round nationwide sales of E15 could significantly increase corn use over time while also offering fuel savings to consumers. Supporters say existing seasonal restrictions and outdated infrastructure rules continue to limit ethanol demand.
Policy recommendations include passing legislation that permanently allows year-round E15 sales, simplifying pump labeling and equipment requirements, and removing older fuel regulations that complicate ethanol production. Industry groups also stress the importance of strengthening the Renewable Fuel Standard by limiting exemptions and ensuring approved volumes are fully enforced.
Leaders warn that past periods of high supplies and low prices led to weakened demand when exemptions were widely granted. They believe stronger enforcement and updated rules can help avoid similar outcomes today.
“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.”
Agriculture and biofuel organizations are urging lawmakers to act quickly. With farmers preparing for the 2026 planting season, industry leaders say timely policy action could stabilize markets, support rural economies, and create new demand for U.S. corn while providing affordable fuel options for consumers.
Photo Credit: usda