A new analysis from the National Corn Growers Association (NCGA) is projecting a $50 per acre revenue decline for the 2019 corn crop as a result of the COVID-19 pandemic.
The analysis showed cash corn prices since March 1 have declined by 16 percent on average, with several regions experiencing declines of more than 20 percent.
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.
“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.
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.
Read the analysis: Impacts of Coronavirus on 2019 Corn Revenue