Apr 30, 2024
NCGA Economic Update 2024: 2QAuthor: Krista Swanson
The United States is a global leader in corn production, producing a record 15.3 billion bushels of corn on 94.6 million planted acres in 2023. Founded in 1957, the National Corn Growers Association represents nearly 40,000 dues-paying corn growers and the interests of more than 300,000 farmers who contribute through corn checkoff programs in their states. NCGA and its 50 affiliated state associations and checkoff organizations work together to help protect and advance corn growers’ interests. NCGA Quarterly Economic Report 2024: 2Q (pdf)
Read MoreApr 8, 2024
Corn Demand Takes a Hit in EPA’s New Tailpipe RuleAuthor: Krista Swanson
Motor gasoline use is expected to decline in the future even under a baseline case, but new tailpipe emissions rules really put the pedal to the metal – rapidly accelerating that process. This would be a major shock on demand for corn used to produce ethanol spurring potentially devastating impacts on farmers and the rural economy. The New Tailpipe Emissions Rule The Environmental Protection Agency recently released its final rule for multi-pollutant emissions standards for model years 2027 and later light-duty and medium-duty vehicles with heavy reliance on the use of electric vehicles. The ruling dictates that sales of non-electric vehicles will drop from over 92% of new vehicle sales in 2023[i] to under 30% of new vehicle sales in 2032. In the EPA central scenario, that translates to a 6.9-billion-gallon reduction in motor gasoline use in 2032, a 5.7% decline from the baseline projection for that year. Motor gasoline use is expected to decline in the baseline, but...
Read MoreFeb 16, 2024
Breaking Down 5 Projections in the USDA 2024 Corn OutlookKey Issues: Production
Author: Krista Swanson
USDA released the Grains and Oilseeds Outlook this week providing an initial look at the 2024/25 marketing year projections that include lower production, greater domestic use, increased exports, and higher ending stocks as compared to the current 2023/24 market years. The following is a summary and some additional context for five projections from the latest outlook. Yield Corn yield is projected at 181 bushels per acre. Yield projections depend on the modeling approach and time series used. While a 3.7 bushel per acre increase over the 2023 record 177.3 bushels per acre may seem like a stretch, a regression on annual yields from 2023 to several different historical points including 1934, 1980, and 1996 all predict 2024 yields within about one bushel of the USDA projection. Trendline yields are a reasonable expectation at this point. Adverse weather is generally thought to have a negative impact on yields but in 2023 a record yield was achieved in a year with widespread...
Read MoreFeb 9, 2024
Climate, Conflict, & Currency Impact Cost Competitiveness for U.S. Corn ExportsKey Issues: Trade
Author: Krista Swanson
A combination of climate, conflict, and currency values are factors in cost competitiveness that impacts transits and overall U.S. corn exports. Climate Climate conditions brought widespread drought to the United States Corn Belt in 2023. Dry conditions in the Mississippi River basin led to record low water levels. As a result, barge weight and traffic restrictions were imposed, and the 7.7 million tons of corn moved by barge on the Mississippi River in 2023 was 30% lower than 2022 and 54% lower than 2021. Ultimately, the cost of added time and weight restrictions were factors contributing to a higher corn price at port but also meant pace of getting grain to the port was slowed. Climate-induced waterway challenges for U.S. corn don’t end at the Gulf. Extreme drought has forced substantial scaleback of shipping through the Panama Canal, a key global maritime channel. The Panama Canal Authority (ACP) has reduced traffic to 24 ships a day, about two-thirds of the normal...
Read MoreDec 1, 2023
Drought & River Transport Impact on Corn CompetitivenessKey Issues: TradeTransportation and Infrastructure
Author: Krista Swanson
For the second year in a row, drought conditions are impacting transportation on the Mississippi River at the peak shipment point of the year. Shallower river levels mean barge weight restrictions, slower barge traffic, and higher costs to ship commodities on the river. Ultimately, this translates to a relatively lower price at the farmgate and higher cost for the world buyer. Drought Slows Grain Barge Traffic in 2022 and 2023 The Mississippi River is an important channel for commodity transportation. The USDA reports the final mode of transport was barge for 13% of U.S. grains in 2020, and 46% of exported U.S. grains[i]. There are normally two peaks in grain barge movements, one in late summer leading up to the end of the marketing year for corn and soybeans, and the other emerging in the fall harvest season and into the post-harvest months. The impact of low water levels on grain barge movements was notable in 2023, marking the second consecutive year of drought...
Read MoreAug 29, 2023
Corn Growers Disappointed in EPA’s WOTUS RuleKey Issues: Farm Policy
Author: Colleen Willard
The National Corn Growers Association (NCGA) expressed disappointment with the revised Waters of the U.S. (WOTUS) rule that was issued today by the Environmental Protection Agency (EPA) and the Army Corps of Engineers. “U.S. corn growers are disappointed by EPA’s revised WOTUS rule,” said NCGA President Tom Haag. “The agency failed to open the process to public comment and engagement, which would have been extremely valuable. Instead, the agency has released a rule that does not fully respect the holdings from the recent U.S. Supreme Court case on WOTUS. ” EPA released the revised rule after the U.S. Supreme Court issued a ruling in Sackett v. EPA earlier this summer that narrowed the scope of the Clean Water Act’s jurisdiction by, among other things, a unanimous decision that “significant nexus” was unlawful.
Read MoreAug 23, 2023
NCGA President to EPA: Atrazine Critical to Thousands of Farmers, EPA’s Decisions on Product Should be Guided by ScienceKey Issues: Production
Author: Colleen Willard
National Corn Growers Association (NCGA) President Tom Haag testified today before an Environmental Protection Agency Scientific Advisory Panel about the importance of atrazine to corn farmers. “NCGA commends the scientific and risk-based analysis and conclusions of the EPA in this reevaluation of the 11 atrazine studies identified by the 2012 Scientific Advisory Panel as calling for further review to assess the effects to aquatic plant communities,” Haag noted in the testimony. “NCGA points to the conclusions in the white paper, which continue to affirm scientific evidence which supports the safe use of atrazine while protecting the vital aquatic plant communities and their related ecosystems.” The purpose of the SAP is to seek feedback on the draft white paper, Examination of the Microcosm/Mesocosm Studies for Evaluating the Effects of Atrazine on Aquatic Plant Communities, which is being submitted to the Federal Insecticide, Fungicide, and Rodenticide Act SAP for peer...
Read MoreFor media inquiries contact Bryan Goodman, goodman@ncga.com