Ukrainian farmers may leave corn unharvested due to poor profitability — opinion

Source:  Komersant
жнива кукурудза

Some Ukrainian farmers may decide not to harvest corn this season due to low purchase prices, export disruptions and high grain drying and storage costs. According to Denys Marchuk, Deputy Chairman of the Ukrainian Agrarian Council, Ukraine’s potential corn crop could reach around 33 mln tons, but only if farmers harvest all planted areas.

Under current market conditions, harvesting and post-harvest handling costs for some farms could exceed the potential revenue from corn sales, Marchuk said. Grain drying is particularly costly due to additional energy requirements, while farmers’ ability to sell their crop remains constrained by disruptions to export logistics.

As a result, some producers may leave corn standing in the fields until spring, hoping to harvest it later when market conditions improve. This strategy would allow farmers to postpone harvesting, drying and storage expenses, but would also increase the risk of crop losses and deterioration in grain quality.

The situation is further complicated by a potential shortage of grain storage capacity. According to Marchuk, if the crop is harvested in full, Ukraine could face a storage capacity deficit of 8–11 mln tons. Slow exports mean grain will remain in the country for longer, occupying elevator capacity ahead of the large-scale arrival of late crops.

Therefore, Ukraine’s actual corn harvest this season will depend not only on yields and planted area, but also on whether harvesting remains economically viable. If export capacity stays restricted and domestic prices fail to cover producers’ costs, part of the potential 33 mln tons of corn could remain in the fields until spring.

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