The Corn Economy: NCGA Highlights High Production Costs Amidst Economic Crisis

This week, the National Corn Growers Association (NCGA) continued to raise alarm about the economic crisis hitting rural America, as commodity prices drop at a time when input costs remain at near-record highs. As NCGA urges Congress and the administration to act to drive increased demand for corn, such as higher blends of ethanol and increased foreign market access, it has also raised concerns about input costs.

"At a time when many corn farmers are facing a reality of losing money after yet another year of hard work," said Illinois farmer and NCGA President Kenneth Hartman Jr, "it is essential that we examine all factors contributing to the economic hardships facing corn growers."

Average corn production costs have dropped just 3 percent from their peak in 2022 to 2025 while corn prices have declined by over 50 percent over the same period. Even with higher yields, farmers are unlikely to be able to offset these high costs, resulting in continued and widening negative profit margins for the third consecutive year. A farmer with an average cost of production who receives the expected average price is facing an $0.85 per bushel loss in 2025. The outlook for 2026 is even worse, with a forecast projecting lower corn prices and rising costs.

As these trends are unsustainable for all corn farmers, NCGA released a series of three analyses on input prices:

1. Input Costs & Breakeven Levels
2. Inflation Impacts & Historical Comparisons
3. Dissecting Input & Overhead Costs

As the corn growers raise concern about these issues, NCGA is asking elected officials, members of industry and agricultural representatives to come together to identify and advance solutions that will improve the troubling economic situation for farmers and rural America.

You can read NCGA's full analysis on corn input costs and breakeven levels here.