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Farmers Brace for Slim Profits Amidst Slumping Crop Prices
18 Feb
Summary
- Farmers expect narrow profit margins or losses for the fourth year.
- Soybeans are seen as riskier due to global competition and trade.
- Corn plantings are projected to decrease slightly but remain high.
U.S. farmers are bracing for a fourth straight year of narrow profit margins or potential losses in 2026, following a record corn harvest that depressed prices. Planting decisions, made during the winter, indicate a slight reduction in corn acreage, projected at 94.9 million acres, down about 4% from the previous year. However, this still represents the second-most corn acres planted in thirteen years.
Soybean plantings are projected to be 84.9 million acres, aligning with the 10-year average and an increase from 2025's six-year low. Some farmers perceive soybeans as riskier due to rising competition from Brazil and volatile trade relations with China, their largest buyer. Despite the challenges of slumping prices, strong demand from ethanol producers and robust export sales have provided some support for corn futures.
Farmers are actively seeking ways to cut costs, such as delaying machinery repairs and reducing input expenses on soybeans to prioritize corn. The national corn yield reached a record 186.5 bushels per acre last year. While large outputs pressure prices, farmers can potentially earn more with higher yields. The upcoming USDA annual outlook forum and potential meetings between U.S. and Chinese leaders may further influence market dynamics.
