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Potential changes to January supply and demand report could impact 2026 balance sheets

An ag economist at Purdue University says potential changes to the January supply and demand report could impact the balance sheet for farmers in 2026.

Michael Langemeier says the USDA is expected to adjust corn and soybean yields.

“If they reduce corn yield, that could reduce the stocks to use and have a positive impact on price,” he says. “The same goes for soybeans. If you’ve got some crops stored into the spring, you want to make sure you take advantage of any bumps in price.”

But, he tells Brownfield doesn’t expect the overall economic outlook for U.S. farmers to improve.

“Even with those USDA payments, 2024, 2025, and 2026 are still very tight net returns compared to what they were,” he says. “It doesn’t look like the crop prices are going to be anywhere near what the break even prices should be yet again in 2026.”

Langemeier says producers should be mindful of how they use their working capitol, because it might be needed to pay off debt at the end of the year.

The USDA’s next supply and demand report is out on January 12th.

AUDIO: Michael Langemeier, Purdue University