The latest USDA report says the nation may see an all time high in production of corn in 2016, possibly reaching 14.1 billion bushels. Production is following demand, which is being driven by feed, ethanol and exports.
“NCGA is pleased to see continuing demand increases in the ethanol, feed and export sectors in the report, but this report shows us that we need to work even harder,” said National Corn Growers Association President Chip Bowling, a farmer from Maryland. “We are working to increase the availability of ethanol, but we need help in growing demand. We need the EPA to comply with their statutory obligations under the Renewable Fuel Standard and we need Congress to open new trade markets by passing the Trans-Pacific Partnership and lifting the Cuban Trade Embargo. Each of these may be small steps in growing demand, but taken together, these actions will make a difference for farm families across this country.”
Livestock expansion continues, driving the increase in feed. Reports also show a slight reduction in the use of sorghum as a feed stock. USDA projections for exports are also up for next year.
Current forecasts suggest the average yield will be down three bushels per acres, as compared to 2014, but estimates still suggest corn famers in the U.S. could set a new production record.
Ending stocks are expected to reach 2.15 billion bushels, the highest level in more than two decades. The 2016/17 season-average corn price received by farmers is projected to be between $3.05 to $3.65 per bushel.
“While we’re excited about the continued growth in demand, the forecast for record demand increases is more than offset by the estimated increases in production” said Bowling. “If we don’t work together to build demand, the next U.S. President may inherit a rural economic crisis that mirrors the struggles of the 1980s.”