By Andi Anderson
Iowa corn and soybean producers are expected to face continued financial pressure heading into the 2026 growing season.
New estimates from Iowa State University Extension and Outreach show that rising production costs and weak market prices are limiting profit opportunities for many farms across the state.
The Estimated Costs of Crop Production in Iowa – 2026 report outlines challenging economic conditions.
Average market prices for corn and soybeans are projected to remain below total production costs, making it difficult for producers to achieve positive margins. This outlook highlights the importance of careful financial planning and cost management.
According to the estimates, corn production costs are expected to rise by 4 percent compared to 2025. This increase is largely driven by higher fertilizer and chemical expenses.
Soybean production costs are projected to increase by 2 percent. While land costs are expected to be slightly lower, these savings are partially offset by higher labor costs of about 1 percent and machinery costs rising between 3 and 4 percent.
“The Estimated Costs of Crop Production budgets represent statewide average costs for farms in Iowa and should be used as planning benchmarks rather than exact estimates for individual farms,” noted Ann Johanns, Ag Decision Maker program specialist with ISU Extension and Outreach. “Farm-level cost data is vital information for producers to track. Actual costs can differ substantially from published budgets due to soil productivity, machinery strategies, land tenure and management choices.”
To help farmers plan more accurately, ISU Extension encourages producers to use farm specific budgeting tools. Interactive spreadsheet budgets and online calculators available through Ag Decision Maker allow users to enter their own prices, adjust yield expectations, modify machinery and labor assumptions, and test different land cost scenarios.
“Accurate cost tracking, realistic yield expectations and use of farm-specific budgeting tools will be critical as producers plan for the 2026 crop year and beyond,” said Johanns.
Additional support is also available. The ISU Extension and Outreach Farm Financial Planning Program offers one on one financial counseling and confidential reviews of farm financial information with trained associates.
Iowa Concern provides no cost and confidential assistance to help Iowans manage stress, financial challenges, legal issues, and crisis situations.
Together, these resources aim to support Iowa farmers as they navigate tight margins and make informed decisions for the 2026 growing season.
Photo Credit: gettyimages-studio2013
Categories: Iowa, General