WHITE CORN PRODUCTION AND MARKETS FOR NORTH DAKOTA GROWERS

U.S. white corn production, consumption, and exports increased from 1980 to 1999/00 and production and area have since declined. White corn is produced largely in Nebraska, Kentucky, and Texas, although production in Texas has declined and has increased in other states (Illinois, Indiana, and Iowa). Major domestic processors of white corn are located in the southern United States, with the closest large domestic processor located in St. Joseph, MO. Comparisons of white and yellow corn varieties suggest yields are similar, but have a wide range of variability. Net returns for white corn are most affected by white corn premiums and yield differences relative to yellow corn in southeastern and south central North Dakota. A 10 percent yield advantage for white corn over yellow corn or increases in the white corn premium from 10 cents/bu to 30 cents/bu would increase net returns to labor by $10/a in southeastern North Dakota. Effects of increases in yield advantages or white corn premiums have larger impacts in Nebraska than in North Dakota. Estimated net local prices for North Dakota were 22-25 cents/bu higher for shipment to the Pacific Northwest (PNW) export market than for shipment to domestic markets. This dominance of the PNW market for exports of either white or yellow corn from North Dakota and cost disadvantages relative to production from Nebraska makes serving the domestic processing market not so attractive. Results would change if: 1) a local processor or domestic market were to arise which was not at a disadvantage to being supplied from other areas; 2) premiums for white corn over yellow corn were to increase for a sustained period of time; 3) yield advantages of white corn varieties relative to yellow corn varieties increase; or 4) an export market which was not disadvantaged relative to being supplied from other regions were to emerge.


Issue Date:
2002
Publication Type:
Report
Record Identifier:
http://ageconsearch.umn.edu/record/23588
PURL Identifier:
http://purl.umn.edu/23588
Total Pages:
16
Series Statement:
Agribusiness & Applied Economics Report No. 489




 Record created 2017-04-01, last modified 2018-01-21

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