EP. 49 Going All Out to Grow Corn Demand, with NCGA President Ken Hartman and Chairman Harold Wolle

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The NCGA is working nonstop to find relief for growers.

Caught between rising costs and stagnant corn prices, growers are feeling the pinch.

So, as the National Corn Growers Association transitions from the leadership of one member-President to another, its leadership and staff are focused on growing demand for corn in both the short- and long-term horizons.

In this episode, we meet newly-minted President Ken Hartman, Jr., a grower from southern Illinois who is taking the reins as NCGA's top leader.

And we also meet his predecessor, former President Harold Wolle from south-central Minnesota, who's stepping into the role of NCGA chairman.

Together, they'll discuss the top priorities for NCGA in the year ahead, how the organization is driving new sources of demand for corn, and why it's more important than ever to be in touch with your representatives in Washington.

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Transcript:

Harold Wolle

It's a never-ending job. It is education about what a good fuel ethanol is, how it can decarbonize the transportation system right now.

Ken Hartman

The next step is get these higher blends of ethanol and work on trade agreements. There are a lot of things the National Corn Growers are just working on that I don't think everybody realizes…

Dusty Weis

Hello and welcome to the Cobcast: Inside the Grind with the National Corn Growers Association. This is where leaders, growers, and stakeholders in the corn industry can turn for big picture conversations about the state of the industry and its future.

From the fields of the Corn Belt to the DC Beltway, we're making sure the growers who feed America have a say in the issues that are important to them, with key leaders who are shaping the future of agriculture.

So make sure you're following the show on your favorite podcast app and sign up for the National Corn Growers Association newsletter at NCGA.com. I'm Dusty Weis, and today we are joined by a couple of the member growers who lead the National Corn Growers Association.

We're going to get to know a little bit more about them, from their perspectives on the state of the farm economy to the market opportunities that they see on the horizon, and will also take a look at where the association's work is focused at this moment in time and in the future here.

So first, we have your NCGA President, Kenneth Hartman, Jr. Ken, welcome to the show. Could you tell us a little bit about you and your farm?

Ken Hartman

Thank you. I'm excited about being here today. Well, I'm Kenneth Hartman Jr, live in Waterloo, Illinois, right south about 25 miles of Saint Louis in southern Illinois. We have a corn, beans and wheat to grain farm. I'm a fifth generation farmer, been here for many, many years. But right now we're just grain farming. I'm here farming with my wife and my mother who still helps do some of the books.

And then my daughter, who's right now running combine right now because we're still in harvest. I have three daughters here, the other two have jobs off the farm, but, still involved somewhat with agriculture. And just excited about being here today.

Dusty Weis

Yeah. Excited to have you, and always, always an adventure operating multi-generational farm like that. But really, I think at the end of the day and I'm sure that you agree, it's part of what makes it so rewarding. Certainly someone who I think is going to agree with that sentiment is NCGA Chairman, former outgoing president of the National Corn Growers Association, Harold Wolle.

Harold, want to get to know you a little bit more as well and learn about your operation up there in Minnesota.

Harold Wolle

Certainly, Dusty. We farm in south central Minnesota growing corn and soybeans. You know, the farm has transitioned over my career. Started out we had hogs and cattle on the farm. I have transitioned to corn and soybeans. I also have transitioned the farming operation to my son, Matthew.

He is the sixth generation farmer. So, you know, great, great, great grandpa, purchased the first farm from the railroad back in 1883.

So, just a little over 140 years that that farm has been in our family. Very proud of that. That's one of the factors for sustainable farms, I think is longevity on the land. Excited to be here as well today.

Dusty Weis

Six generations on the farm, that's just incredible. And at that point, it's not just an occupation. It's a way of life.

And that's what makes it so special, what we do here. And honestly, at the end of the day, that's what we're all working to preserve, is that ability for families to continue to have these multi-generational opportunities.

For both of you probably it's a big part of why you got involved in NCGA leadership as well is to go out and leave the industry better than you found it, leave it in good shape for the next generation. So as you think about the next decade or so, what are some of the biggest things that need to change so that that next generation of growers, your son Harold and your daughters Ken can be successful at what they do?

Ken Hartman

Well, I think the big thing we need to do is right now we have issues right now with corn prices being low, we need to work on creating demand. It's a big push to create demand. Some of the areas, obviously, is foreign markets, you know, 15% of our grain goes to exports. So that's a big piece of the pie as I would look at this.

We also need to take full advantage of all the other ways that corn is being used. You know, ethanol is huge right now. That's a big part of our market. And then also working on new uses and obviously working with the cattle industry.

But, you know, when you think about ethanol is used for cars and now we're even talking about using for jets, basically anything that's made from a petroleum product can actually be made from corn, and it's environmentally friendly.

Harold Wolle

Absolutely demand is center focus. You know, we need to balance our production with the demand for our products. If we're going to have a price that allows us to be sustainable. And one of those areas is trade, as Kenny mentioned, you know, free trade agreements work, there's no doubt about it. And we have not had a new free trade agreement negotiated in quite some time.

I know there's a few that are being negotiated now, you know, a free trade agreement with Kenya and with the United Kingdom. So there's a potential here. And we need to realize the potential of those trade agreements. So a lot of work needs to be done there. They're very complicated. But a rules-based system of trade is very important as we move forward.

Dusty Weis

You know, we had a conversation a couple of months back with our advocacy team. And one of the things that they drove home, and I certainly think it's worth talking about with just a few days to go until the election here, is the fact that there's no better time to get in your politician's ears than when they're asking to have their job back.

This is a great time to reach out to your local elected officials and your national elected officials, and let them know that you think that international trade needs to be a priority here, and that we need to focus on building demand for that corn. How have you two been active in that process here in your role with the NCGA?

Ken Hartman

Well, we've been very, very active, you know, talking to our politicians, talking to the Biden administration about how important trade agreements are. And obviously, we're looking at, going to have a new administration here on either side. We don't know what that's going to happen yet, but we're bipartisan organization. So we want to keep pushing and explaining to them how important trade agreements are, and how important trade is for us.

You know, some of the things we've also worked on is import tariffs we're concerned with. There's been some issues with import tariffs coming in with fertilizer and chemicals and right now with the way corn prices are and agriculture is in kind of a low, low area, we need to keep those input costs low.

So whatever we can we need to keep that going. Obviously the other things we've been working on is we partnership with the U.S. Grains Council. They're our arm when it comes to working overseas with exports, but they're not the lobbying organization. We're the ones that lobby for trade agreements. We're the ones that basically have to be in DC to work on getting some of this done, especially when it comes to, you know, we're trying to get a farm bill.

Which one of our priorities that farm bill is MAP and FMD. That's market access programs and market development programs. So we're looking at that, doubling that in that farm bill. So that's very important. And there's just a lot of things that National Corn Growers has been working on, on the fronts of, of exporting corn and also on the fronts of exporting DDGs and ethanol.

Dusty Weis

Harold, you've been taking point on this for a while now, trying to get this message out to the people that need to hear it. What's working, what's not, what's been frustrating, what's been rewarding?

Harold Wolle

Well, you know, I think, Dusty, you hit the nail on the head when you advised us to contact our leaders during this pre-election period. And I just wanted to comment that I was able to have my senator, Amy Klobuchar, come out to the farm and ride around in the combine with me. So it was an excellent opportunity to have a discussion about a variety of farm policy issues, including trade and ethanol and the demand for corn with her.

You know, she is, in line to, depending upon who has the majority in the Senate, either be the chair or woman of the Senate ag committee or the ranking member. So, you know, a lot depends on the election this fall as to who the important folks are going to be that can help us achieve our policy objectives.

What's working? Well, you know, our U.S. Trade Representative's office is very important for corn growers as we talk about trade. And we've developed a relationship with the chief ag negotiator, Doug McKalip. He came to one of our conferences and spoke and answered questions and I had a very good discussion with him so that he realizes the importance of trade to corn farmers.

I think that's very important as well. And I don't know that everyone knows the extent that the US Trade Representative's office works for our nation in developing trade throughout the world. So, I'm glad we had the opportunity to visit with Doug a couple different times. And he certainly is an important person for us.

Dusty Weis

Well, now, Harold, I want to hear a little bit more about Senator Klobuchar's visit, because, first and foremost, six generations in business out there in Minnesota, is that the first time that a U.S. senator stepped foot on your soil?

Harold Wolle

Well, my other, U.S. senator is Senator Tina Smith, and she was lieutenant governor before she was Senator. And when she was lieutenant governor, she came out to the farm for a visit. And I got to give her a combine ride as well. And those combine rides are so special because it's just you and the senator in the combine, and you get to discuss things on a personal level.

And I think that when you build relationships like that, it gives you then the opportunity to interact in the future out in D.C. on a very effective basis. And I know Kenny has established many relationships with his elected officials as well.

Dusty Weis

Well, it's not just, an opportunity to get in their ear and tell them what's on your mind, although that's certainly important. It's an opportunity to get to know them as a human being, and it's an opportunity for them to get to know you and your family as a human being as well. How did you go about setting that up?

Did you just call the office, or do you have a little bit of help from staff on that? How did we make that happen?

Harold Wolle

I think it evolved from I gave Senator Klobuchar the president's award when I was president of NCGA and was able to present that to her at Minnesota's Farm Fest. And that just was the beginning of or an acceleration of the relationship that she and I have. And her staff members wanted to get her out to a farm.

She visits all 87 counties in Minnesota every year, and so a farm visit was very appropriate for her in this election cycle. And I and my family were very glad to host her.

Dusty Weis

Oh, I bet the family got a kick out of it.

Harold Wolle

They did. You know, we have a picture in the farmyard of the family and Senator Klobuchar, and that is going to live in our family for a long time.

Dusty Weis

Ken I want your opinion on this, too. When a Senator comes and visits, do you wear the muck boots or do you get out the wingtips?

Ken Hartman

(laughs) Well, I've had a few, I know different congressmen come to the house over the years, and we definitely have gave tours, walked around the round the buildings and explained where things are and just kind of be real the way the farm operation goes.

And, and I think, as Harold says, it's very important to educate them as far as what's really going on down on the farm and make them understand what we're doing, especially when it comes down to the sustainability side.

I know a lot of conservation we do sustainability and the new technologies that we're working with right now, I don't think a lot of them understand what the farm is compared to what it maybe was 10, 20 years ago.

Dusty Weis

No, that's just it. I was out in D.C. in May for the Celebration of Agriculture on the National Mall, and that was a big part of the mission that we had out there was to just get people to understand that farming doesn't look like farming looked like 30, 20, even five years ago. There's a lot more technology, there's a lot more computers, there's a lot more cutting-edge stuff that goes into it.

And we just, we need folks to understand that. But I do want to switch gears a little bit here. And because we're on the topic of demand generation, because that's so important for the future of farming right now, I wanted to talk about the ethanol market, what do growers need to know about the ethanol market right now?

Ken Hartman

Ethanol is very important to the corn growers organizations and the farmers out here in the area as a one of our major markets. Basically, we've got E15 right now is one of our top priorities to get passed year round. There's a bill in the House and the Senate side for E15. We also are working on what they call the Next Generation Fuel Act.

This is a bill that we support and sponsored in the House and Senate side. And if we could get this passed, this would be huge because this would get us to higher blends of ethanol, 20/25 percent. This would create a certification fuel for basically the higher blends of ethanol. So the auto industry could start building engines that were designed for higher blends of ethanol.

It would also go through the process of getting E85 credits again, like it was a few years ago. And we're really hoping to get this passed in the future. We feel like this would be great to be ethanol. We want a level playing field with some of the other forms of energy, and we think this would be great.

You know, if you go right now down to Brazil, they're running 27% ethanol in their vehicles and they're going to 30. And there's no reason that we couldn't do the same thing. I mean, it's environmentally friendly. It's basically a cheaper product right now than regular gasoline. And we've got plenty of corn right now. So it's good for the producer, it's good for the environmentalists, and it's good for the consumer.

Dusty Weis

Ken you know, I know that ethanol has had a huge impact down across central Illinois, across Iowa, across a lot of Missouri, even where I grew up in south central Wisconsin, a little town called Monroe. About 20 years ago, they opened up an ethanol plant that came in to process corn and turn it into ethanol. And that was some of the first new industrial construction that we'd seen in Monroe in decades at that point, as far as I can remember. It's a big deal for rural economies.

Harold, I know this is something that you've been working on as well. What are we doing to get our message out about ethanol?

Harold Wolle

Well, it's a never-ending job. It is education. It's providing information about what a good fuel ethanol is, how it can decarbonize the transportation system right now. You know, and it is a popular fuel in Minnesota. We are so fortunate, we have a lot of retailers that are marketing unleaded 88, which is e-15 and consumers like it because like Kenny said, it's lower priced, it burns cleaner.

And I like to tell folks, you know, in our effort to decarbonize the transportation system, we know how to grow corn. We know how to store corn. We know we've already got our bio refineries that convert corn into ethanol. The system's in place, versus some of the necessary infrastructure that we need in order to have electric vehicles operate properly.

There's a tremendous amount of infrastructure that needs to be put in place. So I think, you know, we need to burn higher blends of ethanol right now in order to decarbonize our liquid fuels, our transportation system.

Dusty Weis

You know, it's funny, we talk about ethanol and it still feels new to me, even though it's not. Again, it's been on the rise, up and coming for a while now. But we did mention earlier that there are some new uses for corn that are being talked about as well. Some stuff that really, truly is cutting edge right now.

What are those and how are we building out those opportunities?

Ken Hartman

Well, one of the big new uses, I think that we that you're talking about is sustainable aviation fuel. I mean, that's a huge opportunity. We're talking, you know, a 50 billion gallon market right now. And, you know, one of the ways that you make sustainable aviation fuel is ethanol to jet. A lot of these ethanol plants, I know there's certain companies that are starting to look at converting them from just ethanol to sustainable aviation fuel.

I know I had, I just had a woman from Boeing came to the farm here this fall, and we were talking about how Boeing is really excited about basically using corn for sustainable aviation fuel, because they're looking at the environmental sustainability side.

They're looking for, you know, working on, you know, the lower CI scores, which we're doing when it comes to the no-till, the cover crops, the different technologies that have came about, they're really excited.

In fact, her comment was that right now, from what I understand, you can basically it's a 50% with current fuels we're doing. But she says down the pipeline, down the road, it could be 100%. And it gets to that point, we're talking about a 100 billion gallon market. And so there's plenty of room for everybody for this market.

Dusty Weis

I mean, it just kind of makes sense when you think about it. I was talking about this the other week with my brother-in-law, who is an engineer and gets really excited about this kind of stuff, and he pointed out the fact that you never can make an airplane that is electric, because it turns out that lithium batteries are really, really heavy, and putting heavy things on airplanes is not a great way to build an airplane, it turns out.

And so I think that there's a huge opportunity here going forward. What do you think, Harold?

Harold Wolle

Absolutely. A huge opportunity. We need to have everybody on board. You know, the consumers need to realize that there's a need to decarbonize that air transportation system as well. It's going to cost some more money. So it's going to be a combination of some tax credits. You know, the current administration has proposed some 45Z tax credits that would help the sustainable aviation fuel be more affordable.

That's very important. We need to get the parameters around that tax credit identified and let farmers know so that they can meet the requirements to produce the corn that would qualify when it is converted to ethanol for a low carbon, sustainable aviation fuel.

Dusty Weis

You know, Harold, as we wind down here, you just handed off the baton to Ken after your term as president. We talked earlier about leaving the industry better than you found it. And as you look back, I want to give you a chance to brag on what you've done here because it's a hard job. You work real hard.

You work real hard on the farm, and then you're spending half your time on the plane to and from DC here. So as you look back, what are some of the things that you're proudest of having accomplished as president of the Corn Growers?

Harold Wolle

Well, advocating for corn growers across the nation. You know, there are a number of policy issues, and we've been talking mostly about demand here, but there's a bunch of other issues in our arena as well. Endangered Species Act regulations comes to mind. The farm bill, you know, we've known for some time that that 2018 farm bill expired at the end of 2023.

Here we are, into 2024, and we don't have a farm bill done yet. We're very hopeful that that's going to happen in this lame duck session. No guarantees there though, either. And I think, how the election plays out and who has control of the House and the Senate and of course, the presidency are all going to make a difference on what policy issues get through Congress in this lame duck session.

But, a fully reauthorize farm, five year farm bill is something that we've been advocating for. I've certainly been a part of that. Proud to have worked on that.

Dusty Weis

We need something steady. We need something reliable. We need something that growers can count on because they're not just fixated on next year. They're fixated on the next decade. And I think that's probably one of the big takeaways that's always really impressed me about the Corn Growers Association is the fact that it's an organization that's not just hung up on next year, they're looking a generation ahead.

So with that, when you get back to Minnesota after having been away on NCGA duties, what do you tell your neighbors about the experience? Harold, what do you want them to know about the work that we're doing out there?

Harold Wolle

Well, that it's important work and that it does make a difference to them and their operations. The issues that are in front of us that society looks at sustainability, reducing the carbon footprint of agriculture, these are important topics.

And, I want all of the corn growers in Minnesota to know that I've been very committed to advocating for, on their behalf on a variety of issues, including the ones I just mentioned.

Dusty Weis

Ken, what about you? You've been working with Harold on NCGA leadership for a few years here now. Probably known each other a bit longer in that. What do you appreciate about his leadership and his stewardship now as you take the reins as president?

Ken Hartman

Well, Harold's done such a good job when it comes to advocacy. I know he's been in DC a lot. I know he's testified in front of Congress working on the farm bill and some of these areas. I mean, it's always a challenge, but you got to be strong. And Harold's been out there out front, you know, standing up for American agriculture and the corn growers and looking at National Corn Growers as very much of a grassroots organization.

And I know Harold's really supported that and push that. And it gets frustrating sometimes because you work so hard like a farm bill, but at the same time it just takes time. It's just it's going up the ladder one rung at a time. And I know Harold's been doing that and done a great job at it, so I'm hoping that I can follow through and we can get some things done here.

And I mean, it's just like Harold talks about right now. I mean, right now, you know, our lame duck issues is we need to get E15 year round throughout the whole United States. I know the eight states are going to have E15, but that doesn't help us in the east and the west coast and these other areas.

And it's frustrating for me because I look at, you know, how environmentally friendly can we be with, I mean, ethanol is compared to any other product? You know, we keep talking about having a level playing field, get that E15 done and then you go back to the farm bill, I know we basically we've kicked the can down the road here for a year now. It's might get kicked down for another year.

Dusty Weis

Oh we haven't kicked it Ken.

Ken Hartman

Well they have kicked it down, our Washington, D.C. folks, yes I agree we need to put them on the spot and we need to get them to, to get this finished here because, you know, the economy has changed a lot from 2018 to today.

And we need some of the priorities of National Corn Growers is the fact that, you know, crop insurance, when we've looked at the inflation factors we've dealt with, we need support for crop insurance at the higher levels.

We need the MAP and FMD for exports. You need these programs that are in the farm bill just to help support us. That's what I'm hoping that them two projects here, I hope by the end of the year that we can get done. And I know Harold's still there working hard for us as chairman, and I'm going to do what I can as president.

So I'm really excited about the next year and hopefully we can get some things done and hopefully the next step is get these higher blends of ethanol and work on trade agreements. And there are a lot of things that National Corn Growers are just working on that, that I don't think everybody realizes how many things we've done over the years.

Dusty Weis

Yeah, we tend to get caught up in the things that are frustrating, the things that seem stuck. We focus a lot on the to do list, but there's a lot of stuff that's gotten done as well, and we certainly started this conversation about the next generation and setting them up for success.

And so, Ken, as you're talking to your daughters about the future of growing corn in this country, what do you say to give them hope? What do they have to feel good about, do you think?

Ken Hartman

Well, when you look at, I mean, I'm happy my daughter came back to the farm after college. We're looking at the technology that's coming forth with precision agriculture. I mean, the efficiency we're doing with fertilizer. A lot of the biotech products that we're using today. I mean, if you look at trend line yields are going up about two bushel a year.

That's why we need the markets to do that, to basically sell that product so we keep that price up. So there's just a lot of positives on the farm too. We unfortunately we don't always look at them, but it's really you know it's happy to be a family farm and being at home with your family growing a crop.

I mean every year you put it out, you're hoping you got to have a lot of faith and a lot of hope that we can get the right weather and get things so we can get a good crop at the end of the year. So, I mean, it's I say farmers, we sometimes seem to be pessimists, but at the same time, I think we got to be pretty much optimists.

And when you look at what we do and we deal with the weather. So I'm looking forward to the next generations for not only my daughter and Harold's son, but all our farmers out there and, you know, keep that family farm going.

Dusty Weis

There's nothing more optimistic than putting a seed in the dirt in the spring and saying, I hope this is corn come the fall, I got to tell you that. Harold, anything to add to that?

Harold Wolle

Well, I you know, I think I want to emphasize that corn is a tremendous plant. I think farmers one of the things they have going for them then is that every living thing wants to grow and reproduce, and that's certainly what corn does. And I like to think of each of those little corn plants out there as a mini solar collector.

It's taking energy from the sun and converting it into starch and oil, everything that we can use in our daily lives. So whether it's feed, fuel, fiber, corn produces it and it does it naturally by absorbing sunlight. So I think that's one of the things that that our future generations of farmers are going to continue to have going for them.

Dusty Weis

It's the oldest form of solar energy that's out there. And, I got to tell you, I think you're right. I think the future is bright, fellas. Certainly because of the leadership and stewardship of folks like you and everybody that's come before, and the new generation of leaders that's lining up to steward NCGA into the next generation as well.

So I wanted to thank you both for your service to the National Corn Growers Association. NCGA, of course, will continue to work to drive demand and protect profitability for corn growers across the U.S., but your stewardship of the organization has been and continues to be an important part of that process as well.

So Ken Hartman, President of the NCGA from Waterloo, Illinois, and Harold Wolle, Chairman and former president of the NCGA from Madelia, Minnesota, thank you both so much for joining us here on the Cobcast.

Harold Wolle

My pleasure.

Ken Hartman

Thank you.

Dusty Weis

And thank you for listening. We hope you'll join us again next month for another episode of the Cobcast: Inside the Grind with the National Corn Growers Association. If you are on X, you can follow @NationalCorn for more news and updates from the NCGA. Visit NCGA.com to sign up for the association's email newsletter and make sure you're following the show in your favorite podcast app.

The Cobcast is brought to you by the National Corn Growers Association with editing by Matt Covarrubias, and it's produced by Podcamp Media, branded podcast production for businesses PodcampMedia.com.

For the National Corn Growers Association, I'm Dusty Weis.

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