USDA Pegs 2004 Corn Crop at 11.8 Billion Bushels, NCGA Notes (01-12-05)
It’s official.
At 11.8 billion bushels, farmers in 2004 produced the largest corn
crop in U.S. history, according to the annual crop production summary
released today by the U.S. Department of Agriculture (USDA). Corn
growers also experienced record-setting yields in 2004, producing
160.4 bushels per acre.
The 2004 crop was 17
percent larger than the previous record crop in 2003, while yields
were 18.2 bushels higher than the previous record of 142.2 bushels
per acre also established in 2003.
Demand for corn also
remained strong, according to USDA. Today’s supply and demand
estimates peg corn use at 10.82 billion bushels, with demand being
driven by expanding domestic use. Ethanol production is expected
to consume 1.43 billion bushels, or 12.1 percent of the 2004 crop,
while livestock feed remains as the top use of U.S. corn at 6.08
billion bushels. Export use was estimated at 1. 95 billion bushels,
or 16.5 percent of the crop.
The 2004 record harvest
and demand is indicative of corn’s versatility and value,
according to Leon Corzine, president of the National Corn Growers
Association (NCGA).
“In the past, corn
was seen simply as a source of feed and food,” he said. “But
with the rapid development of ethanol and other renewable products,
demand for corn has increased dramatically. Obviously, farmers make
their planting decisions based on market signals, and in 2004 corn
growers were able to satisfy record levels of demand.”
Corzine said growers
have driven demand for corn higher through investments in state
checkoff programs. “By investing in the checkoff, growers
built the ethanol industry from the ground up,” he said. “And
checkoff funding is helping to create new markets and uses for corn
that will continue to push demand and value even higher.”
USDA raised ending corn
stocks to 1.96 billion bushels, up from the December estimate of
1.84 billion bushels. Corzine said the checkoff will play an increasingly
important role in developing new markets and expanding existing
markets for surplus grain. “We still have work to do in terms
of market development,” he said. “Corn use is high,
but we’ll continue our efforts to establish even higher levels
of demand in the future and state checkoffs will be crucial in those
efforts."
Iowa growers led the
nation in corn production in 2004, harvesting 2.24 billion bushels
with an average yield of 181 bushels per acre. Illinois followed
closely, producing 2.09 billion bushels and yielding 180 bushels
per acre. Nebraska ranked third in corn production for the second
year in a row, followed by Minnesota and Indiana.
Planted corn area totaled
80.9 million acres, up 3 percent from last year. Area harvested
for grain, at 73.6 million acres, is up 4 percent from 2003. Farmers
harvested 6.1 million acres for silage, a 7 percent decrease from
last year.
However, the number of
acres abandoned this year increased to 1.2 million acres, up 11
percent from the 1.08 million acres abandoned in 2003. The biggest
increase in abandonment occurred in North Dakota. Cool, wet summer
conditions combined with early freezes in August and September prevented
the crop in many areas from fully developing and maturing to the
point that was needed for producers to harvest.