Study reveals impact of corn production on US economy

In 2024, the cultivation of corn in the United States generated a total economic impact of US$ 123,2 billion. The number represents about 0,17% of the national Gross Domestic Product (GDP), according to a study by the National Corn Growers Association (NCGA). With 14,9 billion bushels harvested and an estimated production value of US$ 64,7 billion, the activity strengthens rural communities and keeps a complex economic chain alive.

In total, the corn production chain supports 441 jobs. These include direct jobs in the fields, jobs at suppliers, and jobs generated by consumption by families linked to the sector. The total wages and income distributed exceeds US$28 billion. The tax authorities collect US$7,3 billion in taxes.

The study also takes into account the indirect and induced effects of corn. Industries such as fertilizers, fuels, machinery, transportation, finance and insurance, for example, account for US$36,1 billion in production. Domestic spending by workers linked to corn injects another US$22,4 billion into the economy.

Illinois, Iowa and Nebraska lead the way

Illinois ranks second in terms of total impact, contributing $18,56 billion and supporting 61,9 jobs. Iowa leads in terms of production volume, generating $19,26 billion in impact and supporting 51,2 jobs. Nebraska contributes $13,2 billion and 27,5 jobs.

Kenneth Hartman Jr., president of NCGA and a producer from Illinois, says the potential for the chain could be even greater. To achieve this, it would be necessary to permanently allow the sale of fuels with 15% ethanol and open new international markets for American corn.

NCGA advocates for legislation in Congress that would allow E15 to be sold year-round. It is also working to secure tax credits for aviation ethanol use. Hartman notes, “The economic value of corn could increase if farmers had full access to the biofuels market and to trade.”

Corn reaches 506 sectors of the economy

Farming directly or indirectly impacts 506 industries in all 50 states. The agricultural sector alone generates $70,4 billion in revenue. Wholesale trade ($8,6 billion), real estate ($6,8 billion), manufacturing ($6,6 billion) and finance ($4,9 billion) round out the top of the list.

Even states with low production, such as California, are feeling the effects of corn. There, the impact reaches US$3,6 billion — thanks to the strength of the real estate and insurance industries, which absorb the indirect effects of cultivation in other regions.

Next stop: Capitol

In July, state and national NCGA leaders will visit congressional offices to push for the passage of their bills. The goal is to ensure that corn maintains its role as an economic engine and gains new avenues for expansion.