United Group Insurance

Economists predict significant losses for corn farmers, due to pandemic

Ag/Outdoor, News

August 4th, 2020 by Ric Hanson

(Radio Iowa) – An analysis prepared for the National Corn Growers Association concludes American corn farmers will lose 89 dollars an acre in revenue this year — due to the pandemic. Chris Edgington, who farms near St. Ansgar, is the association’s new vice president. “There’s some economists predicting that are projecting….the 2021 crop year will be impacted,” he says.

A prediction from a University of Illinois economist suggests 2020 revenue from U.S. corn sales will dip to a 14-year low. “We’ve got a lot of challenges,” Edgington says. “We’ve got a lot of great product that we need to get moved and we’re just looking for homes to get it out of the bins so we can put this year’s crop in there.” The economic analysis done for the Corn Growers indicates that even after calculating the additional payment from federal farm programs, there’s a 15-dollar per acre drop in revenue related to the 2019 corn crop.

“COVID is definitely causing some challenges in the country,” he says. “Exports are a challenge. Demand for both ethanol and livestock have both been hit pretty hard at times and so those things rise right to the front when we get together as a group and talk.” Edgington is part of a three-generation operation. He farms with his father, his brother and his son.