Corn Production plays a very vital role in Economic Growth of USA. The USA is leading in the World with the largest producer of corn. There 96,000,000 acres of land is reserved for only corn production. Future of Corn or Future Prices of Corn in the USA seems like very enlightened as it exports 13% of its annual yield of corn.
Across North America, Corn fields have been spread a few thousand years ago. A plant known as teosinte is original corn plant and is still grown in Mexico and its size has substantially increased due to efforts of scientific research. Corn is now the third leading grain crop in the world.
When suitability of land was scientifically determined by Lewis and Clark, at the Midwestern United States (mostly in Iowa), then people gradually started moving there. They started growing corn there in large scale and that results in high pace of benefits for them. This is how Growth of Corn started. It was a decider for Future Prices of Corn.
CORN PRICES IN USA:
Corn prices in the US for the current year are as follows:
This shows the fluctuation of corn prices in the USA. The analyst can predict the future prices of corn by analyzing this table. In production sector, US is on top leading producers of corn leaving behind China with a huge margin. The largest quantities of corn (maize) are processed and consumed in the USA (around 32% of world output), followed by China (20%), Brazil (5.8%) and Mexico (3.9%).
Only a very small proportion of the corn (maize) output is exported to the international markets because largest proportion of the corn produced is consumed directly in the country where it is originated.
CORN PRODUCTION BY STATES:
Corn production in the US is different in all states. As there no suitable environment is available everywhere for its growth. Iowa, Nebraska, Minnesota, Illinois, Alaska etc. are leading producer of corn in the US.
These facts and figures reveal us about the future prices of corn and its price in the US. As above data significantly shows us that prices of corn will be gone lower in future as US is the only producer of corn in most of his States with most of his consumers are with the US.
Due to 9/11 incident, stabilized Prices for Corn between 1996-2010 went high. However, there was no such big fluctuation within same time period even after this 9/11 incident and so on. As it is obvious in below chart:
Iowa, the largest producer of corn in the US, grows three times as much corn as Mexico. In 2007, Iowa harvested 3,548 acres (1,436 ha) of sweet corn. In 2011, the state had 92,300 corn farms on 30,700,000 acres (12,400,000 ha), the average size being 333 acres (135 ha), and the average dollar value per acre being US$6,708. This state is the decider for the Future of Corn Prices.
Another name for Nebraska is “Cornhusker State” because it is the third largest state which is producing a huge amount of corn.
Minnesota’s largest crop is Corn. In 2010, the state produced 1.29 billion bushels. In 2012, Minnesota’s farmers produced the largest corn crop in the state’s history, at 1.37 billion bushels harvested, equaling 165 bushels per acre, on 250,000 acres.
After the Civil War, varieties were developed which were adapted to the state’s soils and climate, such as Reid’s Yellow Dent. There were 10,500,000 acres planted which were decline to 8,862,000 acres in 1925-30, during the period of 1900-05. In 2012, Illinois sowed 12.8 million acres of corn in 2012, ranking fourth in corn production, behind Iowa, Minnesota, and Nebraska.
instead of cold temperature, farmers have still managed to grow corn in Alaska. They made all this happened by means of greenhouse farming. Corn is popular among Alaskans.
Indiana is located on Corn Belt. For animal feeds they produce corn.
Texas is one of the greatest producers of corn in the US; corn produced in 2010 was some 301 million bushels on 2,300,000 acres (930,000 ha) of land, totaling to $1.2 billion of the crop.
Corn was introduced to Alabama, around the eighteenth century and there have been traces of corn found in Nuyuka’s Upper Creek village which dates back to the period.
These are major states of US which are contributing a lot economically for the US also. These states are not only contributing economically but also catering needs of a local consumer. It is used as in daily edible items and for animal feeds. So catering needs of local do also provide financial help within the US. That’s why they have high economic growth rate.