An analysis released by the National Corn Growers Association shows cash corn prices have declined by 16 percent on average. Several regions are experiencing declines of more than 20 percent, since March 1, as a result of the COVID-19 pandemic.
The analysis projects a $50 per acre revenue decline for the 2019 corn crop. NCGA commissioned the economic analysis, conducted by Dr. Gary Schnitkey of the University of Illinois, to better understand the economic impact of the global pandemic on the corn industry. Schnitkey writes in the study, “Corn will be one of the most impacted crops as its two largest uses – livestock feed and ethanol – are under pressure.” NCGA will use the data to create solutions to help corn farmers and their customers recover.
The analysis was based on cash corn prices as of mid-April and estimated losses would likely increase through the rest of the marketing year. Further analysis is already underway for the 2020 crop year, with losses anticipated to be higher than those in 2019.