Analysis: Corn checkoff delivers strong ROI
Minnesota corn farmers have long asked: What return do we get from our checkoff investment? A new analysis from Decision Innovation Solutions helps answer that question — and the results show that Minnesota’s checkoff continues to deliver powerful returns. This analysis looks at how strategic investments in research, market development, and promotional efforts from 2005 to 2024 have benefited corn farmers across Minnesota.
Market Development
One of the standout findings indicates that a 1% increase in market development expenditures—amounting to approximately $23,499—could lead to a notable 0.06% rise in overall corn usage in Minnesota. This translates to an additional 468,003 bushels in corn demand, valued at $2.04 million. This suggests a multiplier effect of 87:1 for overall market development expenditures.
Specific market development initiatives
Since 2005, Minnesota Corn has invested more than $38 million towards domestic and global market development and research activities for ethanol and coproducts.
Ethanol
Ethanol production, a significant driver of corn demand, is illustrated in the modeling to have an even greater ROI. A 1% increase in marketing efforts is projected to yield approximately 631,992 extra bushels, valued at $2.75 million. This results in a leveraged multiplier effect of 117:1, showcasing the effectiveness of the council’s initiatives in boosting the biofuel sector.
DDGS
A 1% increase in market development expenditures is anticipated to generate an additional 15,799 tons of DDGS usage, valued at approximately $2.45 million— a multiplier effect of 104:1.
Exports
U.S. corn export promotion, funded through the U.S. Grains & BioProducts Council and supported by Minnesota Corn, had a positive and statistically significant impact on U.S. corn exports. Had there not been any U.S. corn export promotion expenditures during the 2000-2024 period, U.S. corn exports would have been 15% lower than they were over that period. The study estimated that for every additional $1 million invested in corn export promotion, Minnesota could see an increase of 8.63 million bushels in corn exports, resulting in an average annual value of approximately $32.4 million. Notably, the elasticity of demand for ethanol and DDGS exports suggests that without these efforts, exports could have been reduced by 20% and 37% respectively.
Nitrogen Research and Education Initiative
Minnesota Corn’s nitrogen initiative promotes best practices for nitrogen management in Minnesota corn production. Funding has been allocated to areas such as education, primary research, innovation grants, and sponsorship for a range of topics, including water and air quality, soil fertility, agronomy, plant genetics, and corn utilization. The stability of the nitrogen use efficiency ratio at levels fluctuating around 0.76 is a strong indicator that nitrogen applied for corn production is being used quite efficiently and effectively.
Trendline corn yields have increased 21% since 2006, while nitrogen use efficiency has held steady — proof that farmers are producing more with the same nutrients. Every $1,000 invested in the initiative leads to an estimated 14 tons of nitrogen retained statewide.
Looking forward
The modeling highlights the importance of sustained investment in market development and research to maximize the economic benefits of corn production. As the MCR&PC continues to identify and promote opportunities for growth in the corn sector, these findings underscore the vital role of the checkoff program in supporting Minnesota’s agricultural economy and helping farmers optimize their operations.
