By Jonathan Eisenthal
For the first time, the National Corn Growers Association (NCGA) has measured the contribution of corn production to the U.S. economy and a larger total contribution, including the indirect and induced activity linked to the industry. The report captured the statistics, state by state, with Minnesota among the top gainers from corn production.
“A study of the Economic Contribution of Corn Farming in the United States for 2023” was prepared by NCGA Lead Economist Krista Swanson using the industry standard modeling software, IMPLAN. The report was published in early July.
Minnesota’s corn farmers produced 9.7 percent of the total sales value of the corn crop in the U.S. in 2023—almost $7.2 billion worth of corn, according to the report. As a share of the total national economic effect, Minnesota corn production in 2023 generated 8.6 percent of the total value, almost $13 billion. The corn industry in Minnesota supported 47,461 jobs with total wages of $2.65 billion in 2023.
“Corn farming is one of the largest sectors in American agriculture,” according to the report. “In 2023, corn farmers in the United States grew 15.3 billion bushels of corn for grain valued at $73.9 billion. For the 2023/24 marketing year, the United States is the world’s largest producer and exporter of corn. The nation’s corn farmers bolster the economy and help build strong communities as evidenced by the results of the Study of the Economic Contribution of Corn Farming in the United States for 2023.”
That’s just the cash value of the corn. For a total effect of corn farming on the economy, the report also looked at the “indirect effect”—economic activity linked to the needs of the corn industry—everything from land sales and rentals to CPAs, equipment, and fertilizer dealers. Beyond that, the income to corn farmers and how that is spent in local, rural economies—what’s called the “induced effect”—is also a major impact on the U.S. economy.
According to the report: “The contribution of corn farming and linkages extended across 524 different industry sectors in all 50 states. Corn farming for grain generated an estimated $151 billion in total economic output in 2023, with an estimated contribution of $62 billion to Gross Domestic Product (GDP), making the industry an essential contributor to the nation’s agricultural and economic value chain. Driving the creation of over 600,000 jobs and providing $35 billion in wages, corn farming strengthens communities in rural America and across the entire nation.”
“This report gives figures for the grower leaders to use when visiting Congress members, even those representing states where there is not a significant amount of corn grown,” Swanson said. “We can show that the value of our corn production is not just limited to helping corn farmers, but also flows throughout many industries and has an impact on wages and benefits and employment across every single state. The importance of policy that supports our corn farmers doesn’t just end at the farm gate; it is connected throughout that supply chain. Our D.C. office put together state numbers from this report to include on the fact sheets the grower-leaders were using during their recent Hill visits. I hope it can continue to be valuable in the coming months, when we are working to get the Farm Bill across the finish line. If there are a handful of legislators who need to be convinced why farm programs are important, maybe these are some numbers we can use.”
Though this report is the first such comprehensive economic picture of corn created by NCGA, Swanson intends to continue to measure the economic contribution of corn each year. As these data points become trendlines, they will show a serious underlying fact of U.S. agriculture today driving the need for a new Farm Bill:
In recent remarks, Minnesota Corn Growers Association President Dana Allen-Tully described the deteriorating financial conditions facing many farm producers: “Adjusted for inflation, net farm income this year will be $43 billion lower than last year, a 27 percent drop.” This comes on top of a 19 percent drop from 2022 to 2023. The Kansas City Federal Reserve observes that declining farm loan repayments and retracting farm income are occurring at a “sharp pace”. Purdue University’s Ag Economy Barometer finds farmer sentiment sharply declining as producer worries rise.
The safety net created by crop insurance and other elements of the current Farm Bill were calculated according to production cost data in 2012. Those production costs have risen sharply in the past 13 years. And while farm exports in many years are among the most positive trade figures for the United States, current statistics project a $32 billion dollar deficit in agricultural product trade with other nations.
“For all these reasons, the time for a new Farm Bill is now, and this economic analysis of corn’s role in the economy is central to this discussion,” said Allen-Tully.
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