By Jennifer Dorsett
Field Editor

An analysis commissioned by the National Corn Growers Association (NCGA) shows cash corn prices have declined an average of 16 percent, with parts of the country experiencing drops of more than 20 percent, since March 1.

The study was conducted on behalf of NCGA by Integrated Financial Analytics and Research, LLP (IFAR) to better understand the economic impact of the COVID-19 pandemic on the corn industry.

“The COVID-19 pandemic is being felt across all sectors of our economy,” Kevin Ross, NCGA president, said. “This analysis clearly illustrates its impact on corn growers and will be beneficial as we work to ensure they have the resources needed to navigate these very difficult times.”

The report based the analysis on cash corn prices as of mid-April.

In February, the Office of the Chief Economist of the U.S. Department of Agriculture (USDA) published estimates for 2019 market year average prices showing corn at $3.85 per bushel. The report’s post-COVID-19 price estimates 2019 corn prices lower to $3.55 per bushel.

The report also predicted prices will fall further throughout the remainder of the marketing year.

“Corn will be one of the most impacted crops as its two largest uses—livestock feed and ethanol—are under pressure. Impacts of reduced livestock demand are just beginning to come to bear in the market, as livestock processing plants are beginning to be disrupted,” the report said.

Using national yield averages of 168 bushels per acre, the report said a 30-cent decline in price would result in a revenue decline of about $50 per acre for corn farmers across the U.S., with some areas facing larger losses.

The report projected an average Price Loss Coverage (PLC) program payment of $17 per base for corn, which would fall far short of covering 2019 revenue losses.

NCGA said in a release these findings underscore the need for the assistance provided in the USDA Coronavirus Food Assistance Program.

“NCGA will continue to work closely with members of Congress and federal agencies on ways to mitigate the pandemic’s impact and help farmers recover,” according to the release.

For more information, visit http://ncga.com/covid-19.

Click here to read the full report.