Cash corn prices have declined an average of 16% since March 1, with several regions experiencing declines of more than 20%, according to an analysis commissioned by the National Corn Growers Association. 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, as part of the organization’s efforts to better understand the economic impact of the global pandemic on the corn industry and work to create solutions to help corn farmers and their customers recover from the financial impacts of this crisis.

“The COVID-19 pandemic is being felt across all sectors of our economy,” said NCGA President Kevin Ross. “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 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.

“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,” wrote Schnitkey.

An average Price Loss Coverage Program payment of $17 per base is projected for corn which would fall short of covering 2019 revenue losses, underscoring the need for the assistance provided by USDA's Coronavirus Food Assistance Program, or CFAP.

Source: National Corn Growers Association, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.