NCGA - National Corn Growers Association Inc.
11/21/2024 | Press release | Distributed by Public on 11/21/2024 09:32
NCGA Releases Quarterly Economic Update
The National Corn Growers Association (NCGA) released its fourth-quarter Economic Update today, reporting on everything from harvest season to the findings from a recent trade study.
"These quarterly updates can help us understand what is and isn't working in the ag economy and this quarter is no exception," said NCGA Lead Economist Krista Swanson. "Our latest issue provides insights on some of the current pressing issues our farmers are facing."
Highlights in this issue include:
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The U.S. Department of Agriculture reports on a rapid harvest season. Warm, dry fall weather across the Corn Belt provided optimal conditions to rapidly harvest the 2024 corn crop, according to a USDA report. The rapid pace gives farmers an edge on any fall field preparations needed for the 2025 crop and more time to finalize production and year-end financial plans, which is critical in the current high-cost and low-price environment.
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A new study shows a tariff war would hurt growers and rural communities. A recently released study by NCGA and the American Soybean Association shows a reignited tariff war would limit market access, reduce corn prices and increase market competition for U.S. corn. Alternatively, the report showed that renewed trade agreements can benefit the corn industry if they include provisions like purchase commitments that could support corn prices. As the U.S. government addresses trade concerns, consideration of farmer impact is important.
- Government projections show net income for farmers drops. The USDA projects U.S. real net cash income for the U.S. farm sector will drop 9.6% in 2024. This decline follows a 23.7% drop in 2023. This is substantial now, but also from a historical perspective. The combined two-year percent decline is the largest two-year percent decline since 1975. Because corn growers can't withstand negative returns for an extended period, NCGA is calling for economic assistance in the short run, a new farm bill and long-term demand that supports the market price.
NCGA releases the quarterly update to provide readers with an overview of trends, challenges, opportunities and market conditions.