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Trends in Production Practices and Costs of the U.S. Corn Sector

Author

Listed:
  • Saavoss, Monica
  • Capehart, Tom
  • McBride, William
  • Effland, Anne
Abstract
Corn for grain is a major field crop in the United States, with wide-ranging uses including animal feed, ethanol, food, beverages, industrial products, and exports. The costs and returns for corn for grain production in the United States have undergone numerous changes over the past several decades. Nationally representative data covering 1996–2018 reveals that over the roughly 20-year period, the U.S. corn industry has increased acreage planted to corn, achieved higher yields except during drought years, and increased overall productivity per planted acre. Concurrently, the real price of corn decreased from 1996 through 2005, climbed through 2012, and then declined again, leading to fluctuating net returns, which peaked in 2011. A combination of long-term factors has influenced demand for corn, including growing demand for feed to meet rising global meat consumption and expanding biofuel production, as well as periodic weather-related international production shortfalls and declining stocks, while weather, seed technologies, precision agriculture technologies, and irrigation were major factors that influenced the supply and cost of production.

Suggested Citation

  • Saavoss, Monica & Capehart, Tom & McBride, William & Effland, Anne, 2021. "Trends in Production Practices and Costs of the U.S. Corn Sector," USDA Miscellaneous 312954, United States Department of Agriculture.
    • Handle: RePEc:ags:usdami:312954
    DOI: 10.22004/ag.econ.312954
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    2. Beckman, Jayson & Ivanic, Maros & Nava, Noé J., 2023. "Estimating Market Implications from Corn and Soybean Yields Under Climate Change in the United States," Economic Research Report 338944, United States Department of Agriculture, Economic Research Service.
    3. Wang, Sun Ling & Olver, Ryan & Bonin, Daniel & Dodson, Laura L. & Williams, Ryan C., 2022. "Climate change, technology adoption, and field crop farm productivity in the United States: Short-term vs. long-term," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322595, Agricultural and Applied Economics Association.

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