U.S. corn production is no small potatoes. In 2023 alone, corn farming contributed an estimated $151 billion to the U.S. economy, including $62 billion to the Gross Domestic Product (GDP).¹
The economic impact of corn affects folks who will never even set foot in a corn field. As corn growers, your industry is something to celebrate, so we’ve compiled some facts and figures on how corn is used and how it impacts the U.S. economy. Next time your cousin from Los Angeles asks what you’re growing all this corn for, you’ll have these bragging rights in your back pocket.
Importance of corn in the economy
Corn production is responsible for the creation of over 600,000 jobs that pay $35 billion in wages across the nation.²
Read on to discover the widespread importance of corn in the economy.
Direct labor wage from corn production
Corn production provides direct labor wage and benefit equivalents of $12.0 billion.³
Indirect labor wage from corn production
There are over 500 firms in different industry sectors across all 50 states with indirect linkages to corn production. The indirect labor and wage benefits from these firms totaled $13.2 billion in 2023.⁴ These firms, including industries that produce and sell items such as fertilizer, fuel, machinery, power, and more, are a part of the corn farming upstream supply chain. Many service industries, including transportation, financial, consulting, and marketing services are also dependent on the corn industry.
Household spending linked to the corn industry
Household spending by farmers, corn industry employees and upstream workers filters money back into the economy through a range of goods and services. In 2023, over 520 different industry sectors across all 50 states had indirect linkages to corn farming, the primary industries being housing, medical care, food, retail, and transportation-related spending. The indirect labor and wage benefits totaled $9.5 billion.⁵
These upstream supply chain linkages and household spending are how corn farming contributes toward an annual average of 608,373 people working in corn farming, supplier jobs, and jobs indirectly linked to corn farming. Employee compensation and proprietor income from these jobs generated an estimated $34.7 billion in 2023.⁶
What is corn primarily used for?
As tasty as it is, a buttery ear of corn on the cob isn’t the sustaining force within the corn production industry. Take a look at the primary ways the U.S. uses corn.
Livestock feed
Approximately 40% of all corn used domestically is used for animal feed, with corn as the main energy ingredient in 95% of livestock feed in the U.S.⁷
Ethanol
Around 45% of all corn is used to produce ethanol. The ethanol industry drives demand and heavily influences corn markets as most ethanol is made from corn starch.⁸
Consumer products
Food and beverage products including sweeteners, flour, cereals and alcohol rely on corn.
Economic impact of corn reaches beyond the corn belt
When you think of corn fields as far as the eye can see, you think of the Midwest. And indeed, Iowa, Illinois, Nebraska, Minnesota and Indiana are the big guns. These states boast the highest corn output and, as a group, contribute the greatest share of total US corn production value. However, although corn production occurs in only 41 of the 50 states, corn brings economic value to all 50 states.⁹
The importance of corn in the economy cannot be overestimated. Raise a glass to corn producers and related industries that keep the world a turnin’.
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Endnotes
- Swanson, Krista. “NCGA Economic Contribution Study for 2023.” National Corn Growers Association, 10 July 2024, ncga.com/stay-informed/media/the-corn-economy/article/2024/07/ncga-economic-contribution-study-for-2023. Accessed 22 Nov. 2024.
- Swanson. “NCGA Economic Contribution Study for 2023.”
- Swanson. “NCGA Economic Contribution Study for 2023.”
- Swanson. “NCGA Economic Contribution Study for 2023.”
- Swanson. “NCGA Economic Contribution Study for 2023.”
- Swanson. “NCGA Economic Contribution Study for 2023.”
- “Feed Grains Sector at a Glance.” USDA ERS, 21 Dec. 2023, www.ers.usda.gov/topics/crops/corn-and-other-feed-grains/feed-grains-sector-at-a-glance/. Accessed 22 Nov. 2024.
- “Feed Grains Sector at a Glance.” USDA ERS.
- Swanson. “NCGA Economic Contribution Study for 2023.”
