The Van Trump Report

US Corn Farmers Contributed Nearly $62 Billion to 2023 GDP

Every year, the National Corn Growers Association (NCGA) analyzes US corn farming’s economic contributions to the US economy. In 2023, corn farming for grain generated an estimated $151 billion in total economic output, with an estimated contribution of $62 billion to Gross Domestic Product (GDP). Those contributions extended across 524 different industry sectors in all 50 states. According to NCGA Lead Economist Krista Swanson, who authored the analysis, the report highlights the crucial role America’s corn farmers play in the nation’s agricultural and economic value chain.“

The report comes as corn prices have dropped and corn growers face many challenges, including higher input costs, tariffs, and some trade barriers. NCGA leaders say the report should serve as a reminder to policymakers that corn grower contributions are important.

“The data in this report illustrate the critical role farmers play in shaping the U.S. economy,” said Minnesota farmer and NCGA President Harold Wolle. “Yet, we are facing many challenges that need to be addressed by America’s policymakers. Our message to Congress is to act on legislative and regulatory issues, like the farm bill, that will support our work.”

Below are more highlights from the “NCGA Economic Contribution Study for 2023.” The full report is available HERE.

Direct Effects: In 2023, corn farmers in the United States grew 15.3 billion bushels of corn for grain valued at $73.9 billion, representing the direct output or industry production value. Corn farming provides direct labor wage and benefit equivalents of $12.0 billion. Corn farming directly contributes an estimated $20.7 billion in value-added output, a measure of contribution to the nation’s GDP. To put that in perspective, USDA estimates the output of all of America’s farms contributed a total $203.5 billion, or about 0.7% of GDP, meaning corn farming alone made up 10% of the total farm-level contribution to GDP.

Indirect Effects:  Other businesses and industries are suppliers to the corn farming industry as part of the corn farming upstream supply chain.  These firms produce and sell items such as fertilizer, fuel, machinery, power, and more. Suppliers also provide services including transportation services, financial services, consulting services, marketing services, insurance services, and more. There are firms in 507 different industry sectors across all 50 states with indirect linkages to corn farming. These firms generated an estimated $47.3 billion in output production value and contributed an estimated $23.8 billion to GDP in 2023. Indirect labor and wage benefits totaled $13.2 billion.

Induced Effect: Household spending by farmers and employees of the industry and those upstream whose jobs are dependent on corn farmers are filtered back into the economy on a range of goods and services. There are firms in 524 different industry sectors across all 50 states with induced linkages to corn farming, some of the largest being housing, medical care, food, retail, and transportation-related spending. These firms generated an estimated $29.6 billion in output production value and contributed an estimated $17.4 billion to GDP in 2023. Induced labor and wage benefits totaled $9.5 billion.

Total Effect: The total effect is an estimated $150.8 billion in total output production value in 2023, with an estimated contribution of $61.9 billion to GDP, representing 0.23% of the total $27.361 trillion GDP reported by the Bureau of Labor Statistics5 . Through upstream supply chain linkages, and linkages to household spending, corn farming contributes towards an annual average of 608,373 people working in corn farming, supplier jobs, and jobs induced by corn farming generating an estimated $34.7 billion in employee compensation and proprietor income. In total, corn grain farming results in $9.1 billion in tax revenues at the federal, state, and local levels.

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