America’s Corn Belt experienced a record-breaking harvest this year, much to the dismay of farmers. The Department of Agriculture anticipates that corn production will reach 16.7 billion bushels this year, surpassing the 2023 record of 15.3 billion bushels. The conundrum is that demand is down, supply is up, and farmers are losing revenue.
Only 1.5% of America’s corn production finds its way into the grocery stores. Around 40% of America’s corn is used to feed cattle, a declining market due to climate change regulations. An additional 15% is exported to other nations, with Mexico coming in as the top importer, purchasing $5.5 billion in corn annually. Yet, an additional 37% of the domestic corn harvest is used to create ethanol.
The National Corn Growers Association (NCGA) is calling upon Congress to permit year-round purchase of ethanoyl products:
“Corn growers are already marketing their corn for extremely low corn prices, and this massive projected corn supply without market-based solutions to increasing corn demand is already causing corn prices to fall further,” said Illinois farmer and NCGA President Kenneth Hartman Jr. “Because we need markets fast for this supply, we are redoubling and intensifying our call for Congress to pass pending E15 legislation that will allow for year-round consumer access to higher blends of ethanol and for the Trump administration to quickly broker deals that will open new foreign markets for corn.”
Corn prices have dropped from $4.20 to $3.90 per bushel. The average cost of production per acre is $897, according to the USDA, and he average cost to grow a bushel is $4.75. That means farmers will experience a $0.85 loss per bushel. This would be the third consecutive year of losses for American corn farmers as they took at $0.60 bushel loss in 2024, and a $0.58 bushel loss in 2023. American farmers are facing a crisis ahead if demand remains low, and it remains to be seen if new legislation surrounding ethanol will be sufficient.
