Farmers Face Growing Supply, Shrinking Prices

IL Corn is Urging Lawmakers to Create Demand that Matches Today’s Record supply Levels

The time for change is now, action is needed from Congress and the administration after the U.S. Department of Agriculture’s (USDA) latest World Agriculture and Supply and Demand Estimates (WASDE) report projected a record 16.7-billion-bushel corn crop this year. This report puts corn farmers further at risk as corn prices are at a record low.

According to farmdoc daily, the reported corn planted acres increased from an earlier estimate of 95.2 million to 97.3 million acres. 

The increased report of corn acreage and demand for markets have shifted the estimates in U.S. ending corn stocks. The stocks-to-use relationships to price forecast yields a projected corn season-average price of $3.76 per bushel, according to farmdoc daily—$0.14 per bushel lower than WASDE’s current forecast.

“Farmers need more demand for corn. Congress must pass higher ethanol blend legislation and the administration should secure more international trade deals to generate the demand necessary for farmers,” Garrett Hawkins, IL Corn Growers Association President and Waterloo, Illinois farmer.

Higher blend policy that allowed for the sale of E25-E30 (a 25-30% blend of ethanol to petroleum fuel) could generate about two billion bushels of corn demand by 2033. Building domestic ethanol demand is the fastest demand-building opportunity.

Farmdoc’scrop budget analysis on cash-rented land for Illinois corn-soybean rotations through 2026 projects the fourth consecutive year of losses, despite expected increases in ARC and PLC support. The updated 2026 budget projections for corn prices are $4.15 per bushel.

IL Corn continues to push Congress and the administration to make decisions that benefit corn farmers’ livelihood, especially in this time for the farm economy.