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Current cost projections expected to weigh on 2027 crop decisions

A farm management specialist with the University of Illinois says he’s concerned about farm finances in 2027.

Dr. Gary Schnitkey says rising fuel prices and current projections of some fertilizers costing farmers over $1,000 per ton will impact revenues.

“Trickle-down effects in our major cost increases will be felt in the 2027 budgets,” he says.

He says many producers had already purchased inputs for 2026 before the conflict in the Middle East sent costs even higher, but the sticker shock will affect 2027 decisions.  

“In our projected corn returns and soybean returns; soybeans are over $100 higher than corn and that’s a pretty wide margin.”  He says, “We do see soybeans as positive now, corn not so much.”

He tells Brownfield, “I think farmers are going to really have to look at switching more acres in soybeans because I would anticipate soybeans will still be projected to be more profitable.”

Schnitkey says ongoing global supply disruptions are expected to keep fertilizer prices elevated this fall, which is when most farmers begin purchasing inputs for next year’s crop.

AUDIO: Gary Schnitkey – University of Illinois