Damage:
Infected ears are considered inedible in North America. In Mexico, they are a delicacy tasting something like mushrooms, called huitlacoche.
Preventing Problems:
Rotate sweet corn, because corn smut fungi can persist in soil for three years. Sometimes spores enter ears through feeding holes made by insects, so growing varieties with tight, thick husks may be a useful strategy. Early sweet corn has fewer problems with smut compared to varieties that mature later in the season. When horses or cows eat smutty corn ears, the fungi can pass through their systems in their manure. In high risk areas like the southeastern US, use fertilizers other than manure to grow sweet corn.
Managing Outbreaks:
As soon as you see them, pick off infected ears and dispose of them in the trash or an active compost pile. Or, harvest the ears and store them in the refrigerator for use in Mexican recipes.