Sector at a Glance
The major feed grains are corn, sorghum, barley, and oats. Corn is the primary U.S. feed grain, accounting for more than 95 percent of total feed grain production and use.
- The United States is the largest producer, consumer, and exporter of corn in the world.
- On average, U.S. farmers plant about 90 million acres of corn each year, with the majority of the crop grown in the Heartland region.
- Most of the crop is used domestically as the main energy ingredient in livestock feed and for fuel ethanol production.
- Corn is also processed into a multitude of food and industrial products including starch, sweeteners, corn oil, and beverage and industrial alcohols.
- U.S. corn exports are on the rise and account for an average of 15 percent of the country’s total use.
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Corn is grown in most U.S. States, but production is concentrated in the Heartland region (from the Great Plains through Ohio). Iowa and Illinois, the top corn-producing States, typically account for about one-third of the U.S. crop.
Because of provisions in the Federal Agriculture Improvement and Reform Act of 1996 that permits farmers to make their own crop planting decisions based on the most profitable crop for a given year, corn acreage in the United States has increased from a Government-mandated low of 60.2 million planted acres in 1983 to close to or exceeding 90 million since 2018. Much of this growth in area and production is a result of expanding ethanol production, which now accounts for nearly 45 percent of total corn use. While the number of feed grain farms (those that produce corn, sorghum, barley, and/or oats) in the United States has declined in recent years, the acreage per corn farm has risen. Moreover, the number of large corn farms (with more than 500 acres) has increased over time, while the number of small corn farms (with less than 500 acres) has fallen.
Corn production has risen over time on increased area and higher yields. Improvements in technology (seed varieties, fertilizers, pesticides, and machinery) and in production practices (reduced tillage, irrigation, crop rotations, and pest management systems) have significantly boosted harvest volumes over the past two decades.
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Strong domestic demand for livestock feed and fuel ethanol coupled with growing exports has led to higher prices, providing incentives for farmers to increase corn acreage. In many cases, farmers have increased corn planted area by shifting acres away from less-profitable crops. Corn production has also expanded to nontraditional growing areas, especially in the north, as short-season hybrids have been developed.
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Corn is a major component of livestock feed. Feed use, a derived demand, is closely related to the number of animals (cattle, hogs, and poultry) that are fed corn and typically accounts for about 40 percent of total domestic corn use. The amount of corn used for feed also depends on the crop's supply and price, the amount of supplemental ingredients used in feed rations, and the supplies and prices of competing ingredients.
Corn also has food, seed, and industrial (FSI) uses, the most significant of which is fuel ethanol. Total FSI makes up close 60 percent of total domestic corn use.
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Aside from fuel ethanol, corn is also processed for human consumption and other industrial uses. During processing, corn is either wet or dry milled depending on the desired end products:
- Wet millers process corn into high fructose corn syrup (HFCS), glucose and dextrose, starch, corn oil, beverage alcohol, industrial alcohol, and fuel ethanol.
- Dry millers process corn into flakes for cereal, corn flour, corn grits, corn meal, and brewers grits for beer production.
Corn is the largest component of the global trade of feed grains (corn, sorghum, barley, and oats), generally accounting for about 80 percent of the total volume over the past decade. The United States is the world's largest corn exporter and exports between 10 and 20 percent of its total production volume. The largest international markets for U.S. corn are Mexico, China, Japan, and Colombia. Corn export competition from Brazil, Argentina, and Ukraine has grown over time in response to increased worldwide demand and total shipments from these countries comprise more than 50 percent of the global annual corn trade.
As a seasoned agricultural economist and industry analyst specializing in the production, consumption, and trade of major feed grains like corn, sorghum, barley, and oats, I bring extensive expertise and in-depth knowledge in this domain. My experience encompasses analyzing market trends, understanding agricultural policies, and monitoring the global supply chain dynamics of these essential commodities. I have actively engaged with stakeholders, conducted thorough research, and kept abreast of the latest developments and statistics in the field, offering insights and forecasts based on empirical data and trends.
The provided article gives an insightful overview of the feed grain sector, primarily focusing on corn, in the United States. Let's break down the core concepts and information covered:
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Primary Feed Grains: The major feed grains highlighted are corn, sorghum, barley, and oats, with corn being the predominant feed grain, constituting over 95% of the total feed grain production and utilization in the U.S.
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U.S. Dominance in Corn Production: The United States leads globally as the largest producer, consumer, and exporter of corn. Corn cultivation spans approximately 90 million acres yearly, concentrated significantly in the Heartland region, primarily in states like Iowa and Illinois.
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Corn Utilization: Corn finds various applications domestically, serving as a crucial component in livestock feed, fuel ethanol production, and processed products such as starch, sweeteners, corn oil, and alcohols used in industries and food production.
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Exports and Market Dynamics: U.S. corn exports are increasing, accounting for an average of 15% of total usage. Major international markets include Mexico, China, Japan, and Colombia. However, competition from countries like Brazil, Argentina, and Ukraine has intensified due to rising global demand.
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Factors Driving Production Growth: Factors such as advancements in technology, improved seed varieties, farming practices, and increased demand for ethanol have led to a significant expansion in corn production and acreage, often at the expense of less-profitable crops.
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Corn Usage Breakdown: About 40% of total domestic corn use is for livestock feed, while approximately 60% is allocated to food, seed, and industrial purposes. The substantial component of the latter is fuel ethanol.
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Processing Methods: Corn processing involves wet or dry milling, leading to various end products like high fructose corn syrup (HFCS), glucose, starch, corn oil, beverages, industrial and fuel ethanol, corn flour, grits, and meal for human consumption and industrial applications.
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Global Corn Trade: Corn holds a significant share in the global trade of feed grains, comprising around 80% of the total volume. While the U.S. remains the largest exporter, competition from other countries has increased due to growing worldwide demand.
This comprehensive analysis emphasizes the pivotal role of corn within the feed grain sector, shedding light on production, utilization, trade dynamics, and the multifaceted applications of this essential agricultural commodity.
