U.S. corn farmers are forecast to reach record total corn supplies according to U.S. Department of Agriculture reports released today. Higher forecasted production outpacing forecasted demand growth resulted in lower average farm price projection of $3.30 per bushel for the 2019/20 market year.
This report, the first forecasting overall U.S. corn supply and demand for the next marketing year, projected higher production than the year prior, with a projected increase of 3.7 million planted acres. The yield, projected to 176 bushels per acre, is based on a weather-adjust trend assuming that both planting progress and summer weather remain normal in comparison with that seen over the prior thirty years. If realized, it would be the third-highest yield on record. Beginning stocks are projected lower than the prior year, yet the total corn supply is forecast to set a new record high at 17.2 billion bushels.
Total corn use is projected to rise slightly in 2019/20, despite lower projected exports. Growth in the projected demand for corn for use in ethanol, notably, is forecast higher due to overall motor gasoline consumption despite lower inclusion rates.
The 2019/20 season-average corn price received by farmers is projected to be $3.30 per bushel, down 20 cents from the year prior.
NCGA is taking a series of actions to do our part to help contain the spread of the coronavirus (COVID-19) and the economic fallout it is creating for corn farmers and our customers. Short term, this means instituting policies to protect the health and safety of our stakeholders and the broader communities we serve. Long term, we’re focused on creating solutions to help corn farmers and our customers recover from the financial impacts of this crisis.
CommonGround is a group of farmers connecting with consumers through conversations about science and research and personal stories about food and misinformation surrounding farming. Supported by the NCGA and state corn organizations.
The Soil Health Partnership (SHP) is a farmer-led initiative that fosters transformation in agriculture through improved soil health. Administered by NCGA the partnership has more than 220 working farms enrolled in 16 states. SHP’s mission is to utilize science and data to partner with farmers who are adopting conservation agricultural practices that improve the economic and environmental sustainability of the farm.