U.S. farmers in the world’s largest corn-producing nation are stubbornly holding onto their corn supplies despite low prices, creating an economic standoff with grain buyers.
South Dakota farmer Eric Kroupa received numerous calls from grain dealers and ethanol plants asking to buy the corn stored in his bins when prices neared 4-1/2-month peaks last month. While he sold some, Kroupa is waiting for buyers to increase their bids before selling more, as prices have since eased and are hovering just above three-year lows.
“There’s a lot of corn out there but it’s sitting in the farmers’ bins and not the end-users’ hands,” Kroupa said.
After stockpiling crops for much of this season due to low prices, many farmers across the U.S. Midwest are continuing to shun buyers despite few signs that prices will improve. Grain supplies are ample, and early ratings of summer crops are the best in years.
According to Reuters interviews with 15 grain farmers, a larger-than-normal volume of grain remains unsold. By September 2025, U.S. corn inventories are expected to reach a six-year high, the U.S. Agriculture Department says.
This uncertainty around when farmers will sell their stored corn could lead to choppy grain prices in both cash and futures markets. Farmers risk waiting too long to sell, as a flood of newly harvested grain is likely to drag down prices this October and November. Meanwhile, buyers need enough supplies to keep processing plants running and exports flowing this summer.
“I’ve never seen anything like it in my life. No one’s engaged, not the farmer and not the consumer,” said Angie Setzer, a partner at Michigan-based Consus Ag.
Many farmers have sold just enough this spring to cover short-term cash-flow needs, hoping adverse weather this summer will trigger price rallies. Some have even convinced seed and chemical suppliers to reduce late fees, allowing them to hold onto their crops longer.
As the stare-down between growers and buyers continues, the uncertainty could lead to choppy grain markets in the coming months.