Study: Corn exports add billions to the U.S. economy
Note: This post was updated in February 2022.
Exporting corn and corn products doesn’t just help improve a farmer’s bottom line — it provides a jolt to the entire U.S. economy. An October 2020 study found that exports of U.S. corn and ethanol generated $43.9 billion in economic output in 2018.
Sales of all grain and grain products generated $64.5 billion in economic output in 2018. The U.S. gross domestic product was boosted by $27.3 billion thanks to the export of grain and grain products. Full-time jobs linked directly or indirectly to grain exports totaled more than 295,000.
The study was commissioned by the National Corn Growers Association and the U.S. Grains Council (USGC) and conducted by from Informa Economics/IHS Markit. It helps make the case for trade as a top priority of U.S. agriculture and the Biden administration’s outreach to the global community, USGC says.
“Exports are a driver for our economy in general, but nowhere is that more important than in agriculture,” USGC CEO and President Ryan LeGrand said in a statement.
“We know that demand today from our overseas customers helps support price and basis for farmers throughout the United States. Demand tomorrow will come from the growing populations in Asia, Africa and Latin America. Putting a dollar figure to the impact that demand has here at home just highlights how important it is to keep working with our customers around the world.”
[More: Study: Corn exports a major driver of Minnesota’s economy]
Export markets are critical to American corn farmers. Each year, approximately 10% to 20% of the U.S. corn crop is exported, amounting to billions of dollars’ worth of product.
In Minnesota, about $1.2 billion worth of corn was exported in 2018, according to the study. That included $570 million worth of corn from western Minnesota’s Seventh Congressional District alone.
As part of its mission to increase economic opportunities for the state’s corn farmers, Minnesota Corn invests corn check-off funds in a handful of organizations that work to build and maintain international grain markets. That includes USGC, which, in 2021-22, is led by Minnesota Corn Research & Promotion Council Member Chad Willis.
Thanks, in part, to USGC, the 2020-21 marketing year set a record for U.S. corn exports and saw ethanol exports rebound after declining during the heart of the COVID-19 pandemic.
In addition to USGC, Minnesota Corn also supports the USA Poultry & Egg Export Council, which works to increase demand for chicken, turkey and eggs. Additionally, Minnesota Corn invests in the U.S. Meat Export Federation, which works to boost beef and pork exports.
[More: Learn more about the U.S. Meat Export Federation on the Minnesota Corn Podcast]
To learn more about the many ways the Minnesota corn check-off is at work for you, visit mncorn.org/your-corn-check-off.
