The demand for corn is at risk due to the growing adoption of electric vehicles, with less ethanol needed, the demand for corn used to make ethanol decreases, and with corn holding such a large share of 90 million acres out of the total 250 million planted, this could be a big problem for the agriculture industry.
Which could endanger the agricultural equipment industry and with it companies like John Deere
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, it is not Elon Musk who plans to sell electric tractors, nor is it that the electric vehicle companies are interested in building robots that will be able to perform a wide variety of tasks, including tasks related to agriculture, what could hurt them is the decrease in demand for corn. The United States grows an estimated one-third of the world’s corn production, in the range of 380 million tons each year. More than 40% of corn production is used to create ethanol, a fuel that is mixed with gasoline, in order to reach the desired octane rating for the fuel we use to fuel our vehicles.
Tesla, which serves as a pioneer in the world of electric vehicles and as a leader in the sale of electric vehicles in the world, is not the only one to blame in the story, when other manufacturers such as Ford, General Motors are pushing their business into electric vehicles and causing disruption in the ethanol market.
John Deere, which serves as the largest maker of farm machinery that prepares, plants, and harvests many of those 250 million acres, will be among the main hit by a decline in the ethanol market. Large represents about half of John Deere’s business. Deere’s competitor AGCO generated $11 billion in sales in 2022.
The John Deere company trades according to a value of 114 billion dollars, decreased 9% since the beginning of the year and 8% in the last year as a whole.
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