NON-GMO CORN - UPDATED FOR 2003

Description. Non-GMO (genetically modified organism) corn is any corn hybrid that has not been genetically modified through biotechnology procedures to add a specific trait, such as BT corn, Liberty Link, NaturGard, KnockOut, YieldGard, Herculex, Roundup Ready, Starlink, etc. In addition, non-GMO corn cannot be treated or exposed to chemical pesticides during storage.
Trends in Demand. The non-GMO corn market has been spurred by consumer concerns in Japan and the European Community about the long-term safety of GMO crops and food products. It is difficult to estimate the acreage of non-GMO corn now under production for this specific market in the United States, since some of the other value-added corn types are non-GMO (high amylose, food grade). Marketing of non-GMO corn will increase if concerns remain for GMO grain overseas and with further adoption of GMO traits. In addition, since many by-products of corn processing are exported, non-GMO corn will be required for these processors. This market is open to anyone who has kept non-GMO corn identity preserved (IP). Producing non-GMO corn may or may not require on farm storage. Premiums generally range from $.03 to $.12 per bushel over Buyers Call or Chicago Board of Trade prices, depending if there are contracts available.

RECOMMENDED PRODUCTION MANAGEMENT PRACTICES

The practices required for successful non-GMO corn production are essentially the same as those used for normal yellow dent corns. Growers should follow recommended agronomic practices, including the maintenance of good soil fertility and pest control to minimize stress and maximize yield potential and kernel quality. However, management practices that preserve grain identity from planting through storage must be followed and chemical pesticides must not be used in bin structures where corn is to be stored.

• Seed Selection: The first criterion in seed selection is to avoid any type of GMO hybrid. (Clearfield corn is non-GMO, but may not be accepted as non-GMO due to potential Bt stacking.) Then, ask about yield history, maturity, standability, disease resistance, drought tolerance, dry-down and adaptability of recommended corn numbers.
• Site Selection: If possible, plant corn on well-drained soils to maximize yield and reduce stress. Avoid droughty and poorly drained soil conditions.
• Crop Rotation: Plant corn following soybeans to increase yield and decrease insect and disease pressure. Rotated corn yields will typically be about 10% higher than corn following corn. This yield advantage is much more pronounced when stress occurs during the growing season. Rotating with soybeans also minimizes volunteer corn, which can cause contamination problems during pollination.
• Isolation: Isolation from GMO corn is essential. Allow a minimum of 16-24 border rows around field to eliminate cross-pollination. These border rows should be harvested separately and used as feed.
• Seedbed Preparation: Prepare a seedbed that will promote uniform seed emergence and crop development. Avoid cloddy soils with heavy residue and poor furrow closure conditions. Conventional and minimum till methods may provide for more even plant emergence than no-till.
• Plant Population: Follow recommended seeding rates, usually about 30,000 plants per acre to maximize yield.
• Planting Date: Plant early in the maturity window for the seed you select; the last half of April is the best planting period, if soil conditions permit. Planting early helps extend the grain filling period and reduces the likelihood of stress during pollination.
• Fertility: Use a balanced fertility program. While not essential in most of Illinois, starter fertilizer can promote uniform plant emergence for good pollination. Nitrogen should be used at a ratio of 1.2 pounds per bushel of expected yield, minus 40 pounds nitrogen if following soybeans, and minus other nitrogen applications such as manure and DAP.
• Insect Management: Since Bt hybrids cannot be used, there is the potential that a foliar insecticide may be required for corn borer control. Use an effective pest control program. Scout fields regularly for potential pests.

RECOMMENDED HARVEST AND POST-HARVEST MANAGEMENT PRACTICS

• Harvesting Non-GMO: To avoid excessive mechanical damage to kernels make sure the combine is properly adjusted. Combine and keep border rows separate for use as feed.
• Drying Strategies: Corn can be machine dried using conventional methods. Low-temperature drying is recommended for increased storability due to low breakage, less fines, improved aeration, and less opportunity for fungal growth. Grain kernel temperature should be kept below 140° F during the entire drying process to minimize undesirable quality losses. Field drying is best and allows the kernel to reach full-maturity.
• Corn Handling and Cleaning: Make sure that augers to and from the dryer are not causing damage. Keep augers full when running and consider replacing pulleys to reduce auger speed and maintain grain quality. Clean dry corn before placing it into a storage bin to improve airflow and reduce the potential for spoilage problems. Storage bins should be swept clean prior to placing grain in them to reduce insect and contamination problems. Once a month during the fall and winter, you should run a cooling cycle to lower grain temperature by 10 to 15° F. The remainder of the time, the fan should be covered to minimize moisture accumulation in the stored grain, especially during premature warming periods in the early spring.

SAMPLE PARTIAL BUDGET ANALYSIS

• Premium:
  Non-GMO corn premiums range from $0.03-0.12/bushel.
  Average premium for non-GMO corn is $.07 per bushel
  Most contractors figure the base corn price on Chicago Board of Trade prices.
• Increased Profit Potential Per Acre:
  Regular Hybrid Corn:
  155 Bu/acre x $2.35 per Bu = $364.25
  $364.25 - $196.00 expenses = $168.25 per acre Regular Hybrid Corn
  Non-GMO Corn:
  155 Bu/acre x ($2.35/Bu + $.07/Bu average premium) = $375.10
  $375.10 - $201.00 expenses = $174.10 per acre of non-GMO Corn

  Added Value = $5.85 per acre

• Trucking Costs:
  Semi - $2.00 per loaded mile. Note: Trucking cost may be higher for non-GMO corn if the producer must truck it further than regular hybrid corn.
  

ADDED VALUE CALCULATOR

ADDITIONAL WEBSITES

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Rita Frerichs compiled the information contained in this fact sheet through interviews with experienced producers and from private sector company representatives. This information has not been validated through research carried out by University of Illinois scientists, but this fact sheet has been prepared under the technical supervision of Emerson D. Nafziger, Steven Eckhoff, and Dale Lattz, College of Agricultural, Consumer and Environmental Sciences, University of Illinois at Urbana-Champaign. This work has been carried out as part of a project to Improve Farm Incomes and Rural Communities through Specialty Farm Products funded by the Illinois Council on Food and Agricultural Research (C-FAR) under the Special Research Initiative (SRI) on Rural Community Development.

For more information on other project activities and outputs, contact Burton E. Swanson, Department of Agricultural and Consumer Economics, 332 Mumford Hall, 1301 West Gregory Drive, Urbana, IL. Tel: (217) 244-6978; Fax: (217) 333-5835; or by e-mail: swansonb@uiuc.edu.

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Please note: This analysis provides an example, based on statewide production costs, how farmers can easily evaluate the economic returns of non-GMO corn. Producers should use their own cost and yield data in comparing the potential profitability of non-GMO corn under their local conditions.
This is the average premium for 27 firms responding to Illinois Specialty Handler Survey, with a range of 3 to 10 cents/bushel for non-GMO corn.