NCGA Analyzes Correlation Between Corn Price and Inflation

Inflation adjusted cost of production for corn has been consistently high since 2012

Corn Markets Corn Prices - Lindsey Pound and Pixabay
Corn Markets Corn Prices - Lindsey Pound and Pixabay
(Lindsey Pound and Pixabay )

According to the National Corn Growers Association, when historical costs to grow corn are indexed to 2025 dollars, there are two historical periods in which costs have been relatively higher than the current 2022 to 2025 period: 1975 to 1985 and 2012 to 2016. In other words, inflation adjusted cost of production for corn has been consistently high since 2012. In that time, market year average corn prices were relatively very low in all but three years (2012, 2021, and 2022).

While NCGA maintains a persistent focus on driving additional sources of demand for U.S. corn in effort to improve the outlook, it is also analyzing input costs that remain near record highs.

For the 1975 to 1985 period, the average annual production cost in 2025 dollars was $1,082 per acre. The median market-year average price of those years was $2.52 per bushel of corn. If those prices were in 2025 dollars the median would be $10.51. While these costs are likely comparative to what some corn growers with higher-than-average production costs are seeing today, it does not seem feasible that the inflation-adjusted price would be offered today anywhere in the country reflecting the weak correlation of corn price and inflation. -source NCGA Press Release

Sign up for more news and market analysis from Pro Farmer.

AgWeb-Logo crop
Related Stories
Mark Schultz with Northstar Commodity says wheat was adding geopolitical premium on Tuesday as peace talks failed over the weekend but the grain complex was also positioning ahead of the USDA reports.
The answers to which hybrids, products and practices paid off may already be in your fields. The trick is stopping long enough to find them, say David Hula and Randy Dowdy.
Farm Journal Field Agronomists say adjusting yield calculations for compromised plants could reveal 20 to 40 fewer bushels per acre than what farmers in parts of the Eastern Corn Belt currently expect.
Read Next
South Dakota’s claim of mere coincidence is absurd, contends producer Julie Burgod. “They can say anything they want, but it’s obvious what is going on here.”
Get News Daily
Get Market Alerts
Get News & Markets App