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Purdue economist: Financial risk grows for farmers heading into 2026 season 

An ag economist at Purdue University says the conflict in the Middle East is contributing to increased financial strain.

Michael Langemeier says operating expenses are running about 2 percent higher than last year.

“Diesel prices and fertilizer prices, they were up sharply, so depending on whether people have bought those inputs prior to March, they’re looking at some overall higher costs,” he says. 

He tells Brownfield net returns for soybeans are slightly higher than corn, but, “You need to know how low does the price need to go before I’m going to have trouble making term debt payments this fall. You want to be able to generate enough cash flow to be able to cover owner withdrawals and principal payments on term debt.”

Langemeier says although commodity prices have increased over the last month, projected breakeven margins for 2026 continue to be well below the cost of production.

AUDIO: Michael Langemeier