In response to mounting financial pressure on corn producers, the National Corn Growers Association’s (NCGA) Input Cost Task Force is sounding the alarm on the harmful impact that high input costs are having on farmers’ profitability.
Economic analysis from NCGA shows that average costs of production have only declined 3 percent between 2022 and 2025, while corn prices have dropped more than 50 percent in that same period. Even with projected stronger yields, most corn growers are still expecting 2026 to be a fourth year of negative returns.
The task force is working to identify practical, short- and medium-term measures that farmers, industry stakeholders, and policymakers can take to mitigate input cost burdens. The Task Force’s objectives are to explore, understand, raise awareness, and provide solutions to address the stubbornly high cost of critical inputs used in corn production that impact farmers’ productivity and profitability.
Since the Task Force’s formation, policymakers, regulators, and industry partners have taken notice:
- NCGA has endorsed Senator Grassley’s Fertilizer Research Act, which would result in greater USDA reporting and transparency related to fertilizer market dynamics and prices.
- The Trump Administration announced that it would reduce tariffs on important fertilizer imports.
- The Department of the Interior added phosphate and potash to the critical minerals list.
- The Senate Judiciary Committee held a hearing on “Competition issues in the seed and fertilizer industries”.
- USDA signed a memorandum of understanding (MOU) with the Department of Justice to strengthen competition for agricultural inputs.
- NCGA worked with House Members on improving a draft letter to USDA and DOJ regarding the inputs and highlighting the role of antitrust enforcement.
Moving forward, NCGA’s input Task Force will continue to evaluate the economics of input supply chains and markets. The Task Force will also explore policy and regulatory solutions to increase supply and competition in input markets.
The Input Cost Task Force is led by Matt Frostic, a Michigan corn farmer and first vice president for NCGA. Herndon, Ky. farmer and NCGA board member Brandon Hunt and Kentucky Corn Executive Director Laura Knoth serve on the task force, along with a cross-section of other farmers, state association staff, and NCGA personnel.
Additional Resources:
High Production Cost Series, Part 1, NCGA