A new analysis from the National Corn Growers Association (NCGA) is projecting a drastic drop in 2020 revenues as a result of the COVID-19 pandemic with impacts persisting into 2021.
NCGA President Kevin Ross says the latest analysis projects a $59 per acre average revenue decline for the 2019 corn crop and an $89 per acre average revenue decline for 2020, compared to pre-COVID-19 projections. “It equates to the lowest crop revenues since 2006 for corn farmers,” said Ross.
The analysis was conducted by Dr. Gary Schnitkey of the University of Illinois using projections for 2019, 2020, and 2021 for pre-COVID and post-COVID scenarios. It follows previous analysis built on market numbers to date, along with estimates of state-level impacts, conducted as part of NCGA’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 analysis was shared with Congressional leaders this week to help them in the development of future legislative efforts to mitigate the pandemic’s impact and help farmers and their customers recover.
Ross commented on the analysis during a press call with the Renewable Fuels Association about the one year anniversary of President Trump’s visit to an Iowa ethanol plant.NCGA president Kevin Ross on revenue loss analysis for corn crop 1:33