WILCOX, NEB – March 22, 2025 –“Agricultural news services reported this week that the Administration is drafting an executive order or proposal that would levy fines of up to $1.5 million on China-made ships or vessels from fleets including ships made in China. Those proposed fees are already limiting available ships to export U. S. grain and other products to international buyers,” said Gale Lush, chairman of the ACGF, a corn, soybean and wheat farmer from Wilcox, Nebraska. “News services also report that ocean vessel owners are already refusing to provide freight offers for commodity shipments. Such anti-export, price-depressing news is not what farmers want to hear at planting season. Any Administration’s action, just as with the past Nixon, Ford and Carter embargoes always causes long-term damage to the U.S. reputation as a reliable supplier to the world. It generates new competition. Not only U.S. corn exports will be hurt. Distillers grain, beef, pork and other exports will drop due to the proposed shipping fees and fines. New demand to replace lost corn exports is the key now, by ramping up U.S. ethanol plant production. E-30 ethanol blends should be mandated nationwide. Congress and the Environmental Protection Agency (EPA) need to act quickly by passing and enacting legislation mandating 30 percent ethanol in gasoline, the optimum blend according to experts. Higher ocean freight costs will also get passed back to the farm through lower corn and grain prices paid to farmers. But, as always, those lower grain prices will not be realized by American consumers through lower-priced groceries.”

Dan McGuire, ACGF policy director said, “targeting America’s best corn export markets with tariffs ultimately causes foreign export competitor countries to increase their corn production. History proves that such U.S. policies create long term U.S. competition. Brazil is a key example. Arbitrary shipping fees/fines function like a de facto grain embargo by limiting U. S. grain exports. The only realistic approach to mitigate that damaged U.S. corn demand is to enact other policies right here in the U. S. domestic market. The only logical policy is a mandatory 30% blend of ethanol in gasoline nationwide. When the federal government enacts a policy that reduces long term U.S. corn exports that same government is then obligated to mitigate that export market and economic loss by enacting long term policies that increase domestic corn demand. That policy is a 30% blend of ethanol in the U.S. gasoline supply. It will create rural economic development, manufacturing and processing jobs, while lowering gasoline prices for U.S. consumers.”

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