New analysis released this week by the National Corn Growers Association (NCGA) projects a drastic drop in 2020 revenues as a result of the COVID-19 pandemic with impacts persisting into 2021.
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. If realized, the 2020 crop year revenue would be the lowest corn revenues since 2006. Residual impacts from COVID-19 on corn prices are very likely to persist into 2021 and possibly beyond.
The analysis was conducted by Gary Schnitkey with 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.
On Wednesday, NCGA President Kevin Ross shared the analysis with Congressional leaders and urged they use it to aid in the development of future legislative efforts to mitigate the pandemic’s impact and help farmers and their customers recover.
You can learn more about NCGA’s efforts surrounding COVID-19 at ncga.com/covid-19.