Corn Prices, CO₂ Pipelines, and the Question Iowa Landowners Are Asking
Do CO₂ Pipelines Boost Corn Prices — Or Just Pipeline Profits?
DES MOINES — Landowners, Iowa legislators, and county officials gathered Wednesday evening at the Embassy Suites in Des Moines for a reception timed alongside the Iowa State Association of Counties (ISAC) winter meeting. While informal in setting, the discussion centered on an issue that continues to generate sharp debate across rural Iowa: whether carbon dioxide pipelines deliver meaningful economic benefits to farmers and counties.
For those unable to attend or who moved between events, presenters shared data intended to answer a central question many landowners are asking — do CO₂ pipelines improve corn prices or local economies?
Incentives: “Pennies Compared to Profits”
Don Johannsen outlined the incentive structure Summit Carbon Solutions has promoted to impacted landowners and counties. According to Johannsen, payments are tied to the percentage of easements secured within a county.
When viewed alongside Summit’s projected revenues, Johannsen said the incentives amount to “mere pennies.” He also provided a publicly accessible calculator allowing landowners and counties to estimate potential payments under Summit’s proposal. Johannsen encouraged landowners seeking more detail to reach out directly.
Corn Prices With — and Without — CO₂ Pipelines
Former Shelby County Board of Supervisors member and corn grower Steve Kenkel presented a side-by-side comparison of ethanol plant corn bids across Nebraska and Iowa.
Kenkel divided the data into three categories:
- Nebraska ethanol plants connected to the Trailblazer CO₂ pipeline, which became operational in late 2025
- A Nebraska ethanol plant not connected to a CO₂ pipeline
- Iowa ethanol plants, most not connected to a CO₂ pipeline
The findings were notable. Eleven ethanol plants connected to Nebraska’s Trailblazer CO₂ pipeline averaged $4.06 per bushel. A Nebraska plant without pipeline access averaged $4.22. Eight Iowa ethanol plants, operating without CO₂ pipelines, averaged $4.16.
A detailed breakdown of these bids, including individual plant prices and locations, is shown in the accompanying chart
PRICE COMPARISON ON ETHANOL PLA…
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Kenkel also noted an important distinction: the Trailblazer pipeline largely follows existing natural gas easements, meaning right-of-way agreements were already in place — a factor that simplified construction compared to new pipeline routes proposed in Iowa.
Oil Prices and Corn Prices: A Linked Relationship
Kenkel said discussions with industry experts reinforced a long-observed relationship in agriculture markets.
“Watch the oil prices,” he was advised. When oil prices rise, corn prices tend to rise. When oil prices fall, corn prices tend to follow.
That linkage, Kenkel said, raises questions about claims that CO₂ pipelines alone can stabilize or increase corn prices.
A Corn Glut — Not a Demand Shortfall
Several recent reports suggest corn prices may be under pressure not because of weak demand, but because of record production.
According to USDA data, 2025 corn production reached approximately 17 billion bushels, contributing to what some analysts describe as a supply glut. Minnesota Public Radio recently reported that farmers were “blindsided” by higher-than-expected corn inventories, while Farm Policy News noted prices are likely to remain low as long as supply continues to exceed demand.
At the same time, exports are surging.
Industry data from Brownfield Ag and DTN Progressive Farmer show U.S. corn exports running significantly ahead of last year’s pace. By late November 2025, export inspections were up more than 70 percent year-over-year, far exceeding USDA projections. Commitments through October were already setting record levels — even without purchases from China.
Farmdoc Daily reports that while some traditional buyers have reduced purchases, diversification into new markets has pushed overall export volumes higher than in 2024.
The Unanswered Question
Despite strong export numbers, corn prices remain soft — fueling skepticism among landowners who question whether CO₂ pipelines are being oversold as an economic solution.
As one presenter summarized, the key question remains unanswered: If demand is strong and exports are rising, why aren’t prices responding — and what role, if any, do CO₂ pipelines truly play?
For many Iowa landowners, that question lies at the heart of the debate now unfolding at kitchen tables, county meetings, and the Statehouse.