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Marketing & Insurance

Purdue Extension > Managing Moldy Corn > Marketing & Insurance

Marketing and Insurance

Gibberella ear rot
Photo by Charles Woloshuk

Publications

Alfatoxin Testing: Illinois, Indiana, Michigan, Ohio (PDF: 34 KB)
USDA-RMA publication provides information about aflatoxin testing laboratories.

Crop Insurance During a Drought: Illinois, Indiana, Michigan, Ohio (PDF: 321 KB)
USDA-RMA publication provides information about insurance.

Loss Adjustment Procedures for Aflatoxin (PDF: 25 KB)
USDA-RMA publication.

Crop Insurance Implications of Aflatoxin in Corn
Information from the University of Illinois farmdoc daily newsletter.


Frequently Asked Questions

What is the best way for an individual producer to handle problems with mycotoxins in their corn?
The first step for producers is to determine the mycotoxin levels in their corn. If they have low levels of mycotoxins, they may be able to find buyers who are offering premiums. If they have high levels of mycotoxins, producers should contact their primary buyer(s) for their discount schedule(s), and compare these discount schedule with schedules obtained from other buyers in the area. Many buyers indicate they are willing to work with their customers to find the best outlet for corn with high mycotoxin levels. As an example, hauling grain to areas where mycotoxins are not a problem may be a good solution. Other buyers have shipped corn with high levels of mycotoxin to some livestock operations, which could accept higher levels of mycotoxin.

 

If I have moldy corn, what are my options for blending? When is the mold/mycotoxin level too high to try and blend out?
For commercial animal feed, including pet and specialty pet food, the FDA has ruled it is illegal to blend corn that exceeds the legal limit for aflatoxin. While the FDA currently has no explicit regulations that prohibit blending corn with high levels of mycotoxins, there are currently discussions about whether this should be an area of FDA enforcement. Given that this is an enforcement gray area, Purdue cannot make any recommendations about blending corn high in mycotoxins.

 

What do I do if I can't feed or sell my corn?
In nearly all cases, the grain market will find an outlet for all the corn, but discounts will vary based on the level of damage. It is important for producers to examine the economic impacts of all alternatives and to maximize their net revenue.

If the producer has a forward contract, but all of the corn available for shipment exceeds allowable mycotoxin levels, the producer should work with the buyer to find an acceptable solution. These could include, but are not limited to:
  1. Delivering clean corn from another farmer
  2. Rolling the contract to next year's crop
  3. Canceling the contract
These might have financial implications in terms of the negotiated prices.

 

For More Information

George Patrick, Extension Agricultural Economist, Farm Management
(765) 494-4241, Email: gpatrick@purdue.edu

Corinne Alexander, Extension Agricultural Economist, Marketing
(765) 494-4249, Email: cealexan@purdue.edu

Chris Hurt, Extension Agricultural Economist, Marketing
(765) 494-4273, Email: hurtc@purdue.edu