US Corn Operations
US corn operations grossed approximately $52.6 billion between September 1st, 2018, and August 31st, 2019. In 2018, the average cost to produce a bushel of corn was above its average market value, resulting in a net loss of $4.2 billion in US corn operations.
Gross US Corn Operations Income
- From September 1st, 2018 through August 31st, 2019, the United States produced 14.42 billion bushels of corn.
- Over the same 12 months, the average price of corn was $3.648 per bushel.
- This means that corn operations yielded a gross revenue of approximately $52.6 billion from September 1st, 2018 through August 31st, 2019.
Net US Corn Operations Income
- From January 1st, 2018, to December 31st, 2018, the average price of corn was $3.71 per bushel.
- With an average yield of 176.4 bushels per acre in 2018, each acre grossed approximately $652.68 worth of corn.
- Illinois's average cost per bushel of corn was $4.003 in 2018.
- Given that Illinois's cost of living index is 93.4 and the other top 9 corn-producing states have an average cost of living of 92.9, Illinois is likely a suitable representation of the approximate cost of US corn production.
- At an average yield of 197 bushels per acre and a cost of 4.003 per bushel, the average cost per acre of corn in Illinois was $788.591.
- Since the price of corn in Illinois is usually equal to or less than the average national price, each acre of corn in the state lost approximately $53.45 in 2018.
- At an estimated loss of $0.293 per bushel and 14.42 billion bushels of corn produced from September 2018 to August 2019, corn operations in the US generated a loss of approximately $4.2 billion.
Corn Operations Expenditures and Recent Market History
- Corn prices fell by nearly 33% in 2013 and haven't recovered.
- Half of all farms in the US have lost money every year since 2013.
- Aside from land, the second largest expenditure for corn farmers was seeds in 2018.
- From 2000 to 2018, seed prices rose from $30 per acre to around $114 per acre.
- These seeds are genetically modified to have higher yields and better resistance to disease.
- Over the same period, total corn yields have only increased by 35%.
Research into grain indexes, USDA reports, and market statistics indicated that there were no pre-compiled sources detailing the gross income of US corn operations. For this reason, it had to be triangulated. This was done by first finding the mean price for a bushel of corn for the 12 months between September 1st, 2018 and August 31st, 2019. This number ($3.648) was then multiplied by the total US corn bushel production (14.442 billion) to get our answer ($52.6 billion).
In order to find the net income of US corn operations, the average price per bushel in Illinois for 2018 (4.003) was subtracted from the average gross income per bushel in that same year (3.71). After determining the net loss per bushel ($-0.293), the loss per acre ($-0.293 x 197=$-57.721) and national net loss ($-0.293 x 14,420,000,000=$-4,225,060,000) were found.
Cost of living of the other nine top corn producing states were found using the following calculation: (90.1 + 90.8 + 101.6 + 90 + 99.8 + 89 + 97.3 + 87.1 + 90)= 835.7/9 = 92.8888888.