In the past 2-3 years, there have been very few good opportunities for farmers to market corn and soybeans at favorable price levels. This has resulted in a large amount of grain being sold below breakeven levels, as well as a significant amount of the 2025 corn crop being still in storage on farms across the Midwest. This has also left farmers with some very difficult grain marketing decisions for both the grain that is still in storage, as well as for the 2026 crop that is currently being planted. In recent weeks, there has been a bit more optimism, with some improvement in corn and soybean prices.
Nearby Chicago Board of Trade (CBOT) soybean futures closed at $12.03 per bushel on May 1, which was an increase of 25 cents for the week. The nearby CBOT futures price has risen by over a $1.50 per bushel since the beginning of 2026; however there has been a lot of volatility in day-to-day soybean market closing prices. The 2026 CBOT soybean futures price surpassed the early May CBOT prices of $10.50 per bushel in 2025 and $11.63 per bushel in 2024; however, the 2026 closing price is still well below the early May closing prices of $14.99 per bushel in 2023, $16.65 per bushel in 2022, and $14.03 per bushel in 2021.
Nearby CBOT corn futures closed at $4.80 per bushel on May 1, which was highest closing price for the July futures contract in the past 13 months. The nearby corn futures price has risen by about $.40 per bushel since the beginning of 2026, and is about $.50 above the nearby CBOT futures price during harvest season in the Fall of 2025. Similar to soybeans, the 2026 May 1 CBOT corn futures price surpassed the early May CBOT prices of $4.72 per bushel in 2025 and $4.46 per bushel in 2024. The current 2026 corn futures price is still well below the early May closing prices of $5.85 per bushel in 2023, $7.84 per bushel in 2022, and $5.77 per bushel in 2021.
From 2021 until early 2023, nearby futures prices on the CBOT for both corn and soybeans were at the highest sustained levels since a similar period a decade earlier from 2011 to 2013. This allowed for some excellent profit margins for Midwest corn and soybean producers during that period, especially for farmers that had average or above average crop yields in those years. The nearby CBOT corn futures price exceeded $5.00 per bushel from early 2021 until late June of 2023, and remained above $6.00 per bushel from early 2022 until late April of 2023. Prior to 2021, the nearby corn futures price had not been above $5.00 per bushel since late Summer of 2013. In fact, from 2015 through 2020, nearby corn futures were below $4.00 per bushel for a high percentage of the time, which provided for very challenging profit years for farmers.
Similar to corn, the nearby CBOT soybean futures price exceeded $13.00 per bushel from early in 2021 until late in 2023, except for a few months in the Fall of 2021. Nearby soybean futures prices exceeded $14.00 per bushel most of the time in 2022, trading above $16.00 per bushel for a few months in the Spring and early Summer that year. Prior to late 2020, the nearby soybean futures price had not exceeded $12.00 per bushel since late Summer of 2014. From 2011 through 2013, nearby soybean futures exceeded $13.00 per bushel for much of that period. The all-time high soybean futures price of $17.68 per bushel occurred in September during the drought year of 2012. On the other hand, soybean futures traded near or below $9.00 per bushel much of the time during 2018 and 2019, due to the effects of the U.S. trade war with China.
The downturn in the CBOT prices during 2024 and 2025 for both corn and soybeans was driven by a combination of increasing U.S. and World grain stocks and struggling export demand for both commodities, along favorable U.S. corn and soybean production in 2025. Recent improvement in grain prices has been driven by strong domestic demand and solid export sales in recent months, along with more manageable worldwide grain supplies. However, the large projected levels of 2025 corn and soybean ending stocks in the U.S. has tempered some of the enhancement in cash grain markets. The current war in Iran has also created some uncertainty in the grain markets. The markets are now focused on 2026 planting progress and growing season crop conditions in the U.S.
The “basis” level for local corn and soybean cash price bids in most areas of the Upper Midwest became wider in 2024 and 2025, and basis levels have remained quite wide during the first few months of 2026. The “basis” is the difference between the local cash price being offered in a given month and the closet CBOT futures price. The cash corn basis level in Southern Minnesota in recent months has been $.40 to $.50 per bushel under nearby CBOT prices at most locations, with slightly better basis levels at some ethanol plants and feed mills, The soybean basis level in the region at soybean processing plants has been $.30 to $.40 per bushel below the CBOT nearby futures price, while basis levels at local grain elevators has generally been $.50-$.70 under CBOT futures prices. Current cash basis levels are slightly wider than at this time a year ago. Many processing plants and local elevators in the Corn Belt offered cash prices with a positive basis at certain times during 2022 and 2023.
 
Current Grain Marketing Opportunities
The current rise in grain prices has certainly been welcome news to farmers who still had some 2025 corn and soybeans stored in grain bins for future sales. The cash soybean price at Southern Minnesota processing plants topped $11.70 per bushel on May 1, which is one of the highest cash prices in the past two years. Many farmers had already sold all of their 2025 soybean crop after harvest or in early 2026 for cash flow purposes when soybean prices were about $1.50 per bushel lower than current levels. Cash corn prices are $4.15 to $4.25 per bushel at many locations in southern Minnesota; however, cash corn prices did not top $4.00 per bushel until recent weeks. Most producers likely had a breakeven level above $4.50 per bushel for the 2025 corn crop.
Once farm operators reach planting season, they pay close attention to “new crop” corn and soybean prices for harvest season and beyond at local grain elevators and processing plants. Cash bids for Fall delivery of the 2026 corn crop at local grain elevators and ethanol plants in Southern Minnesota on May 1 ranged from $4.25 to $4.50 per bushel at many locations, which is slightly higher than a year ago and similar to early May “new crop” corn bids in 2024. Cash bids for 2026 “new crop” soybeans at grain elevators in Southern Minnesota are near $10.75 to $11.00 per bushel, with forward prices just above $11.25 per bushel at processing plants. The current cash soybean harvest bids for 2026 are nearly $1.50 per bushel higher than a year ago, and are similar to early May soybean harvest bids in 2024.
Harvest price bids for corn are based on the CBOT 2026 December futures price, while soybean harvest bids are based on the November futures price. The corn basis level for the Fall of 2026 remains quite wide at about $.50 to $.60 per bushel at local ethanol plants and grain elevators in Southern Minnesota. The soybean basis for the Fall of 2026 has been near $.50 per bushel under at soybean processing plants and $.80 to $.90 per bushel below the CBOT November futures price at grain elevators. The basis levels at local grain elevators and processing plants are important to farm operators for determining pre-harvest grain market strategies in a given year.
In the past twenty years (2006-2025), the CBOT December corn futures price has increased at least $.20 per bushel above the Spring crop insurance price (average price in February) in 18 of 20 years, and has increased by at least $.30 per bushel in 16 years, and by at least $.40 per bushel in 12 years. The median increase in the December price has been $.59 per bushel. The 2026 Spring crop insurance price for corn was $4.61 per bushel, and CBOT December closing price on May 1 was $4.99 per bushel, or $.38 per bushel above the Spring price.
Grain marketing decisions for 2026 will likely be very difficult for most producers, with current cash prices below breakeven levels. For many Midwest crop producers, the breakeven levels to cover direct and overhead expenses on cash rented land in 2026 will likely be near or exceed $5.00 per bushel for corn, and be over $11.00 per bushel for soybeans. In many years, the Spring and early Summer months usually offer some of the best opportunities to forward price “new crop” corn and soybeans. Unless there is a drought or other crop issues in the U.S. in 2026, corn and soybean prices are likely to follow this more typical seasonal price pattern as we progress toward harvest this year. Further export issues with tariffs or a worsening of the war in Iran could put further pressure on grain prices; however, passage of year-round E-15 ethanol usage could be a boost for markets.

USDA announced that eligible farmers will receive additional Supplemental Disaster Relief Program (SDRP) payments in the coming weeks through Farm Service Agency (FSA) offices. The additional payments will essentially double any SDRP payments that farmers received previously. A total of about 16 billion dollars was available for the SDRP program, as part of the farm disaster assistance funds that were allocated by Congress in December of 2024. The SDRP payments were initiated to offset crop losses that producers incurred in both the 2023 and 2024 crop years. The crop losses were calculated separately for each year, so eligible farmers could potentially have received a payment for each year. USDA also announced that sign-up for the SDRP program at local FSA offices will be extended until August 12, 2026, from the current deadline of April 30, 2026.
SDRP “Stage 1” payments were paid to farmers with eligible crops that had a federal crop insurance policy in place in 2023 and 2024, or that had crops enrolled in the Noninsured Disaster Assistance Program (NAP) in 2023 and 2024. To qualify for “Stage 1”, farmers needed to have received a crop insurance indemnity payment or a NAP payment tied to a qualifying crop disaster in 2023 or 2024. Qualifying disasters include floods, wildfires, hurricanes, freezes, excessive moisture, heat, and qualifying drought. Eligibility for drought losses was restricted to farmers in counties that experienced a drought level of “D3” or higher at in 2023 or 2024, or in counties that were at a “D2” drought level for eight or more consecutive weeks, based on the weekly U.S. Drought Monitor.
Stage 2 of the SDRP program was for crop losses from similar qualifying crop disasters in 2023 and 2024 that were required for SDRP Stage 1. SDRP Stage 2 includes assistance for “uncovered” crop losses, crop “quality” losses, and “shallow” crop losses. The “uncovered” crop losses were targeted toward crops that are not covered by federal crop insurance or the NAP program. This could include certain fruit and vegetable crops, tree farms, etc. The crop “quality” losses included losses that resulted in quality discounts in a crop that were not covered by crop insurance, such as may have occurred from flooding. Forage crops that had reduced nutritional value may also be eligible for “quality” losses under Stage 2 of SDRP.
The “shallow” crop losses in Stage 2 were intended to cover did not meet the threshold requirements for Stage 1 SDRP payments. This is the category that most Midwest corn, soybean, and wheat producers fell under for potential Stage 2 SDRP eligibility. The type of eligible losses and the payment formulas and calculations for Stage 2 were different from the calculations that were used for SDRP Stage 1 payments. As a result, a very small percentage of producers were able to qualify for SDRP Stage 2 payments due to “shallow” crop losses in 2023 and 2024., which has limited the total payments that will likely be paid under SDRP Stage 2.
SDRP Stage 1 payments were determined by taking the original crop insurance projected revenue (APH yield times the Spring price for the crop) times an established factor (.95 for 80% or 85% crop insurance coverage, .925 for 75% coverage, etc.) to arrive at the SDRP crop revenue. The actual crop value (final 2024 or 2023 crop insurance yield times the RMA harvest price for 2023 or 2024) and the “net” crop insurance indemnity payment received were subtracted from the SDRP revenue total to calculate the maximum SDRP eligibility. The maximum SDRP eligibility was then multiplied by a factor of 35 percent (.35) to arrive at the net SDRP Stage 1 payment amount. The additional SDRP payment that was just announced will pay an additional 35 percent (.35) of the original calculated SDRP payment eligibility, which will be similar for any Stage 2 payments.
The SDRP payment limit is $125,000 per eligible individual or entity, which increases to $250,000 if at least 75 percent of the reported gross income on the tax returns are derived from eligible farm-related operations. There are potential higher payment limits for certain specialty crops. There will be a separate payment limit for both 2023 and 2024. The first and second SDRP payments will be combined for payment limit purposes for each year. Once farmers hit the payment limit, they are not eligible for any additional SDRP payments for that year.
Eligible farmers that have already received a SDRP payment for 2023 or 2024 do not need to sign-up or complete any additional forms at their FSA office. The additional SDRP payments will be automatically paid electronically from FSA through direct deposit methods, similar to other FSA payments. Farmers that have not completed SDRP Stage 2 applications will still need to complete the appropriate forms and apply at their FSA office by August 12. USDA has a very comprehensive SDRP website available on SDRP payments and application procedures at: https://www.fsa.usda.gov/resources/programs/supplemental-disaster-relief-program-sdrp
 
SDRP Payment Distribution
The USDA SDRP website “dashboard” lists the approved SDRP Stage 1 applications and the total payment amount for the U.S., as well as the approved applications and payment amount for each State. The “dashboard” also lists the total SDRP amounts paid out for each eligible commodity. Based on the SDRP “dashboard” data, as of April 27, 2026, a total of just over $6.7 billion had been paid in total SDRP Stage 1 payments in the U.S. for 473,214 approved applications, which results in an average of $14,165 per approved application. Of the total SDRP payments, just under $2.5 billion has been paid for corn, just under $1.6 billion for soybeans, along with approximately $798 million for wheat, $541 million for cotton, $161 million for sorghum, and just over $80 million for both peanuts and rice., with lesser amounts for all other eligible crops.
Following are the top 10 States in total SDRP Stage 1 payments received, along with the number of the approved applications and the average payment per application:
1. Minnesota = $726.5 million paid; 48,091 approved applications; $15,106 per application.
2. Kansas = $708.4 million paid; 75,443 approved applications; $9,391 per application
3. Texas = $629.5 million paid; 44,133 approved applications; $14,265 per application
4. Iowa = $598.4 million paid; 52,397 approved applications; $11,421 per application
5. Nebraska = $511.1 million paid; 53,337 approved applications; $9,582 per application
6. South Dakota = $337.4 million paid; 28,335 approved applications; $11,908 per application
7. North Dakota = $333.3 million paid; 24,077 approved applications; $13,841 per application
8. Illinois = $262.1 million paid; 30,819 approved applications; $8,505 per application
9. Missouri = $186.5 million paid; 20,509 approved applications; $9,094 per application
10. California = $185.2 million paid; 5,936 approved applications; $31,192 per application
The SDRP payment amounts for each State will now be essentially doubled. There was no “dashboard” data available for SDRP Stage 2 payments; however, the total Stage 2 payments will be much lower than Stage 1.
 
Summary of the Additional SDRP Payments
On the surface, it appears that there is a wide disparity among States in the total amount of SDRP Stage 1 payments, approved SDRP applications, and the SDRP payment per application; however it is important to remember that these payments were based on average crop yields and national average crop prices in 2023 and 2024, States that had higher crop yields in those years likely had higher levels of farm revenue from crop production. For example, Minnesota had an average corn yield of 174 bushels per acre in 2024, compared to 217 bushels per acre in Illinois., with a 2024 national average corn price of $4.24 per bushel. This would result in a 2024 average gross revenue for corn of $738 per acre in Minnesota, compared to $920 per acre in Illinois, or an advantage of $182 per acre in Illinois. There was also a corn revenue advantage of $95 per acre in Illinois for 2023, compared to Minnesota. Based on average 2023 and 2024 corn acreage in each State, and the doubling of the SDRP payments, Minnesota farmers will receive a total of about $91 per acre in SDRP payments, compared to $24 per acre for Illinois farmers, or an advantage of $67 per acre total for Minnesota farmers for both years.
For additional information contact Kent Thiesse, Farm Management Analyst Phone --- (507) 381-7960; E-mail --- [email protected]

Like the start of a big NASCAR race or the beginning of a Championship game, farmers in portions of the Upper Midwest began full-scale field work during the week of April 13-19. Farm operators in many portions of the western Corn Belt have reported almost ideal soil conditions for planting; however, rainfall and wet soil conditions during the first half of April has delayed the initiation of major fieldwork in some areas of Iowa and Southern Minnesota. It appears that the 2026 planting season may be similar to last year in much of the Upper Midwest, with fairly favorable corn and soybean planting conditions in the last half of April. Having favorable weather and planting conditions in April is important for getting the corn and soybean crop off to a good start. 
Some areas of the Midwest received some much-needed precipitation in late March and early April, including additional rainfall this past week in some areas. Much of eastern Iowa, southeast Minnesota, and southern Wisconsin has received 2-3 inches of precipitation in the past few weeks, with even higher amounts in localized areas, which has delayed planting progress in these areas. Other areas of southern Minnesota, northern and central Iowa, and eastern South Dakota received more moderate amounts of rainfall. Precipitation amounts have been significantly less in much of the Western Corn Belt, where fieldwork progress is more advanced. 
The recent precipitation followed extremely dry conditions during most of the Winter and in much of March. This continued a dryness pattern across the western Corn Belt has existed since last Fall. In the latest USDA weekly crop report, the percentage of topsoil moisture in various States that was listed as “short” or “very short” included: Nebraska at 79%, Kansas at 60%, and South Dakota at 54%. In other Corn Belt States, Illinois was at 26%, Indiana at 25%, and Minnesota at 22%, with Iowa at 14% in the lower moisture categories. Ohio, Wisconsin, and North Dakota were all at less than 10 %. The levels of top soil moisture are below normal for early in the growing season in most areas of the Western Corn Belt and Plains States. 
Many areas of the Western Midwest and Plains States have remained quite dry in recent weeks. The most recent U.S. Drought Monitor released on April 16 showed that nearly all of Nebraska and the south half of South Dakota were in “severe” to “extreme” drought. Northwest Iowa southern Illinois, southwest and northeast Minnesota, northwest Wisconsin, and much of Kansas were also listed in the “severe” drought category. Portions of central Illinois and Indiana, along with northwest Minnesota, were listed as “abnormally dry”. Most other areas of the Upper Midwest did not register a reading in the latest “U.S. Drought Monitor. 
Soil temperatures during early April have been quite variable in many areas of the Upper Midwest. At the University of Minnesota Research and Outreach Center near Waseca in Southern Minnesota, the 24-hour average soil temperature during the first week of April was near 40 degrees Fahrenheit at the 4-inch level; however, those soil temperatures warmed up to near 55 degrees by April 15, which is a desirable soil temperature for good corn planting and seed germination conditions. Soil temperatures in the Upper Midwest cooled again by April 18, but warmer temperatures are expected in late April. Farmers and agronomists tend to pay close attention to soil temperatures early in the growing season; however, soil temperatures become less of a concern by late April, when date of planting becomes more of a priority. Research has shown that soil conditions at the time of planting may be more critical than soil temperature for getting good germination and early season corn growth. 
Research shows that 50 percent corn emergence will occur in about 20 days at an average soil temperature of 50 degrees Fahrenheit, which is reduced to only 10 days with an average soil temperature of 60 degrees F. The likely enhancement in soil temperatures certainly provides optimism to have favorable conditions for corn germination and seedling growth. The warmer soil temperatures are also favorable for the initiation of soybean planting, which also occurs in late April and May in many areas. Every year is different, and agronomists encourage producers to adjust to soil conditions and weather forecasts when making corn and soybean planting decisions. 
Unless conditions turn very wet in the next few weeks, a large majority of corn in Minnesota could easily be planted before the end of April or early May this year. Corn planting delays can significantly impact final corn yields. In both 2018 and 2019 a majority of the corn was planted from mid-May until early June. According to the USDA Weekly Planting Progress Report, only 2 percent of the corn in Minnesota had been planted at the end of April in 2019, which was about 15 days behind normal. Minnesota’s corn yield declined from record yield levels in 2015, 2016 and 2017 to 182 bushels per acre in 2018 and only 174 bushels per acre in 2019. In 2023, only 5 percent of the corn was planted by May 1 and the final statewide corn yield of 185 bushels per acre. 
Historically, early planting of corn usually leads to higher-than-normal state average corn yields in Minnesota and other Upper Midwest States. In several years when 50 percent or more of the corn acres in Minnesota have been planted in April or the first week of May, the State has usually set or been near a record corn yield. In 2015, corn planting in Minnesota was 83 percent completed by May 3, resulting in a record yield of 188 bushels per acre, which was followed with 89 percent of the corn planted by May 8 in 2016, again resulting in another record statewide corn yield of 193 bushels per acre. In 2020, when 76 percent of the corn was planted by May 3, the statewide corn yield was 192 bushels per acre, just short of the statewide record corn yield. One exception was in 2017, when most of Minnesota’s corn was planted in the first two weeks of May; however, very favorable growing conditions throughout the year in most areas resulted in a statewide record corn yield that year. 
The record corn yields of 201 bushels per acre in 2025 and 195 bushels per acre in 2022 were somewhat exceptions to the trend of April planting, as Minnesota did not achieve 50 percent of the corn planted until after May 10. It should be noted that a much higher percent of the corn in Southern Minnesota had been planted by May 10 in both of those years, and the counties in the southern third of the State were largely responsible for the record statewide corn yields. In addition, both of those years featured very favorable growing conditions following planting. Another exception was in 2021 when 71 percent of the statewide corn acreage was planted by May 3; however, the 2021 average corn yield in Minnesota was only 178 bushels per acre due to drought conditions in many portions of the State that reduced yields. In areas of the State that received adequate rainfall, the 2021 corn yields were above average to near record levels. 
Traditionally, once farmers have completed planting their corn acres, they move directly into soybean planting; however, in recent years some farmers have went to earlier soybean planting in April. Similar to earlier corn planting dates, research does show that with favorable growing conditions there is a yield advantage to planting soybeans in April or early May, as opposed to planting in late May. A majority of soybean producers in the Upper Midwest strive to plant soybeans in late April and early May; however, the ideal window to plant soybeans and still achieve optimum yields is much wider than with corn. Farmers in many areas have planted soybeans in late May, and even early June, and achieved favorable yield results. 
With the addition of the recent rainfall, soil conditions have been described as “almost ideal” for Spring planting by farm operators and agronomists in many areas the Upper Midwest. Significant amounts of precipitation have slowed planting progress in some areas; however, most crop producers in the region should be able to begin full-scale corn planting once soil conditions are fit. The recent precipitation should also provide adequate topsoil moisture for good corn germination and emergence in most of this region; however some rainfall may be needed in the western Corn Belt. Periodic moderate rainfalls during planting season can be beneficial for good seed germination and early season plant growth. 
For additional information contact Kent Thiesse, Farm Management Analyst Phone - (507) 381-7960; E-mail - [email protected] 

The April 9 USDA World Supply and Demand Estimates (WASDE) report did not include any significant changes to supply or demand, compared other recent WASDE reports. The 2025-26 projected ending stocks in the April report for corn and soybeans remained the same as the estimates a month earlier, while the wheat ending stocks were increased slightly. The expected 2025-26 market year average (MYA) prices for corn, soybeans and wheat were all increased slightly from the March price projections. This is important because it lowers the estimates for the potential 2025 PLC and ARC-CO payments, which will be paid in October of 2026. These payments are very important this year for cash flow planning purposes. 
CORN
The latest WASDE report estimates the 2025-2026 U.S. corn ending stocks at 2.13 billion bushels, which would be an increase 37 percent from a year earlier. The 2025-26 corn ending stocks compare to a carry-out levels of 1.55 billion bushels in 2024-25, 1.76 billion bushels in 2023-24, 1.36 billion bushels in 2022-23 and 1.38 bushels in 2021-22. The corn stocks-to-use ratio for 2025-26 is estimated at 12.9 percent, which compares to ratios of 10.2 percent in 2024-25, 11.8 percent in 2023-24, 9.9 percent in 2022-23 and 9.2 percent in 2021-22. The current stocks-to-use ratio is still below the high corn stocks-to-use ratios of 14.6 percent for 2018-19, and 14.5 percent in 2017-18. The rather high projected carryout level could limit potential for significant rallies in the cash corn market in the coming months, especially if there are favorable weather conditions in the 2026 growing season. 
USDA is currently estimating the U.S market year average (MYA) corn price for the 2025-2026 marketing year at $4.15 per bushel, which is an increase of $.05 per bushel the March estimate. The projected 2025-26 MYA price compares to recent national average prices of $4.24 per bushel in 2024-25, $4.55 per bushel in 2023-24, $6.54 per bushel in 2022-23, and $6.00 per bushel for 2021-22. The 2025-2026 MYA price estimate for corn and soybeans is the expected average farm-level price from September 1, 2025, through August 31, 2026; however, this does not represent the average price for either the 2025 or the 2026 calendar year. 
SOYBEANS
Soybean ending stocks for the 2025-26 marketing year in the latest WASDE report are estimated at 350 million bushels. The projected 2025-26 carryout level compares to ending stocks of 325 million bushels in 2024-25, 342 million bushels in 2023-24, 264 million bushels in 2022-23, and 274 million bushels for 2021-22. The projected soybean ending stocks for the current year would be highest in the past five years, but would still be considerably lower than the high carryout level of 913 million bushes in 2018-19, which existed during the last U.S. trade war with China. The soybean stocks-to-use ratio for 2025-26 is now estimated at 8.2 percent, which compares to ratios of 7.3 percent in 2024-25, 8.3 percent in 2023-24, and 6.1 percent in both 2022-23 and 2021-22. The projected 2025-26 ratio is still well below the very high soybean stocks-to-use ratios of 23 percent for 2018-19. There has been some improvement in soybean prices in recent weeks; however, further price enhancements will likely be dependent on future crush and export levels, along with 2026 growing conditions in the U.S. 
USDA is projecting the U.S. average farm-level soybean price for the 2025-2026 marketing year at $10.30 per bushel, which is an increase of $.10 per bushel from the March estimate. The estimated 2025-26 market year average soybean price is above the final MYA price of $10,00 per bushel in 2024-25, which was the lowest average price since the 2020-21 marketing year. The 2025-26 price estimate compares to other recent average soybean prices of $12.40 per bushel in 2023-24, $14.20 per bushel in 2022-23, $13.30 per bushel in 2021-22, $10.80 per bushel in 2020-21, and the very low MYA price of $8.57 per bushel for 2019-20. Average cash soybean prices at local grain elevators in Southern Minnesota were $9.70 per bushel in mid-January, but were near $10.75 per bushel at the time of the April WASDE report. Prices at soybean processing plants were somewhat higher. 
WHEAT
The April WASDE report estimated the U.S. wheat ending stocks for 2025-26 at 938 million bushels, which is an increase of 33.7 percent in the past two years. The projected 2025-26 wheat carryout level compares to 855 million bushels in 2024-25, 696 million bushels in 2023-24, and 570 million bushels in 2022-23. The 2025-26 farm-level average wheat price is now projected at $5.00 per bushel, which is an increase of $.05 per bushel from the March estimated price. The 2025-26 wheat price estimate compares to other recent MYA price levels of $5.52 per bushel in 2024-25, $6.96 per bushel in 2023-24, $8.83 in 2022-23, $7.63 per bushel in 2021-22, and $5.05 per bushel in 2020-21. The 2025-26 MYA price for wheat and other small grains is the average farm-level price in the U.S. from June 1, 2025 until May 31, 2026. 
2025 PLC or ARC-CO Payments Are Reduced 
The final 2025 MYA prices for corn, soybeans, and wheat are used to determine any potential Price Loss Coverage (PLC) or Ag Risk Coverage (ARC-CO) payments for the 2025 crop year. If the MYA price for a crop is lower than the established reference price, there would a PLC payment. The potential ARC-CO payments are based on the MYA price and the final 2025 county average yield, compared to the benchmark (BM) price and county benchmark yield for 2025. For the 2025 crop year only, eligible producers will get the higher of any potential PLC or ARC-CO payments for corn, soybeans, wheat, and other program crops, with payments to be paid in October, 2026. For information on benchmark yields, prices and revenues, and other farm program information, producers should access the USDA ARC-PLC web site at: www.fsa.usda.gov/arc-plc. 
Following is a brief summary of potential 2025 PLC and ARC-CO payments: 
CORN - The 2025 PLC corn reference price is $4.42 per bushel, and the 2025 benchmark price for ARC-CO payments is $5.03 per bushel. Based on the April WASDE report, the estimated 2025 market year average (MYA) corn price is $4.15 per bushel. This is $.27 per bushel below the threshold for 2025 corn PLC payments and is $.88 below the 2025 benchmark price. At a final MYA price of $4.15 per bushel, the estimated 2025 PLC payment would be $30 to $40 per corn base acre, depending on the farm program yield. If the MYA price increases to $4.25 per bushel, the PLC payment estimate would drop to about $20 to $30 per base acre; however, if the MYA price declines to $4.05 per bushel, the PLC estimate would increase to about $40 to $50 per base acre. At the current 2025 MYA price, potential 2025 ARC-CO payments would be initiated with a final 2025 county average corn yield that is about 5-10 percent above the 2025 county benchmark yield. The final 2025 ARC-CO payments will depend on specific county benchmark yields, as well as the final 2025 county average yields. 
SOYBEANS - The 2025 PLC soybean reference price is $10.71 per bushel, and the 2025 soybean benchmark price for ARC-CO payments is $12.17 per bushel. Based on the April WASDE report, the estimated 2025 MYA soybean price is $10.30 per bushel. This is $.41 per bushel below the threshold for 2025 PLC payments and is $1.87 below the 2025 benchmark price. At a final MYA price of $10.30 per bushel, the estimated 2025 PLC payment would be $10 to $20 per soybean base acre. At the current MYA price estimate, 2025 ARC-CO payments would be initiated with a final 2025 county average soybean yield that is about 5 percent above the 2025 county benchmark yield. Similar to corn, final 2025 ARC-CO and PLC payments will vary depending on the final 2025 county yields and benchmark yields (ARC-CO), and on the established farm program yields (PLC). 
WHEAT - The 2025 PLC wheat reference price is $6.35 per bushel, and the 2025 wheat benchmark price for ARC-CO payments is $6.98 per bushel. Based on the April WASDE report, the estimated 2025 MYA wheat price is $5.00 per bushel. This is $1.35 per bushel under the threshold for 2025 wheat PLC payments and is $1.98 below the 2025 benchmark price. At a final MYA price of $5.00 per bushel, the estimated PLC payment would be about $40 to $50 per base ace. At the current MYA price estimate, the 2025 ARC-CO payments would be initiated with a 2025 county wheat yield that is about 25 percent above the 2025 county benchmark yield. It appears highly likely that there will be both a significant PLC or ARC-CO payment on wheat base acres for the 2025 crop year. 
For additional information contact Kent Thiesse, Farm Management Analyst Phone --- (507) 381-7960; E-mail --- [email protected]

The USDA “Prospective Plantings Report” that was released on March 31st projected a 3.4 percent decrease in 2026 U.S. corn acreage compared to a year ago, along with a 4.3 percent increase in 2026 soybean acreage from a year earlier. The USDA planting intentions numbers came in slightly higher than the grain trade expected for corn acreage and slightly lower than trade estimates for soybean acreage. The USDA “Quarterly Grain Stocks Report” was also released on March 31st, which lists the estimated U.S. grain inventory as of March 1, 2026, for both “on-farm” and commercial grain storage. The USDA estimates for U.S. corn and soybean inventories came in near the average stocks estimates of the grain traders. 
The USDA prospective planting acreage is based on survey data collected from about 73,800 surveys sent to crop producers in early March. Total U.S. crop acreage was listed at 223.8 million acres expected to be planted to corn, soybeans, and wheat in 2026, which down from 225.3 million acres in 2025, but is similar to total 2024 crop acreage. The USDA estimates for intended 2026 U.S. corn and soybean acreage was viewed as mainly “nuetral” for “new crop” corn and soybean futures prices on the Chicago Board of Trade (CBOT). After the USDA planting intentions report was released on March 31, December 2026 both CBOT December corn and November soybean futures closed up slightly. 
Typically, these late March USDA Reports are very critical to farm operators and grain traders due to their impact on grain market prices in the Spring and early Summer months. During these months, many farm operators usually sell any remaining grain inventories from the previous growing season, as well as look for opportunities to forward price a portion of the anticipated crop for the current year. In a majority of years, corn and soybean prices usually reach their “peak-price” during the period from April until June, which is why these reports are so important. 
Highlights from the March 31st USDA Planting Intentions Report: 
CORN - The planting intentions report indicated that just over 95.3 million acres of corn are expected to be  planted in the U.S. in 2026, which is a decrease of 3.5 million acres from the 2025 corn acreage of  98.8 million acres. The 2026 U.S. corn acreage would still be above the 2024 corn acreage of 90.9 million acres and the 2023 acreage of 94.6 million acres. The 2025 U.S. corn acreage was the highest in nine decades. The current USDA corn acreage estimate was about 967,000 acres above the grain trade estimates. Based on the USDA report, 2026 planted corn acreage is likely to decrease in most of the major corn production States. Following is the estimated 2026 corn acreage and the expected decrease from 2025: Iowa at 13.1 million acres (-3%); Illinois at 10.9 million acres (-3%); Nebraska 
at 10.3 million acres (-4%); Minnesota at 8.6 million acres (-3%); South Dakota at 6.3 million acres  (-8%); North Dakota at 4.4 million acres (-6%); Missouri at 3.65 million acres (-4%); and Wisconsin at 3.7 million acres (-11%). Indiana at 5.4 million acres and Ohio at 3.4 million acres expected in 2026 were the same as the final 2025 corn acreage. Kansas at 7.1 million acres was the only major corn producing State with an expected increase in 2026 corn acres (+4%). 
SOYBEANS - Based on the estimates in the March 31st Planting Intentions Report, U.S. soybean acreage in 2026 is projected at 84.7 million acres, which represents an increase of 3.5 million acres from a year ago. The 2026 U.S. soybean acreage estimate compares to 81.2 million acres in 2025, 87.2 million acres in 2024, 83.6 million acres in 2023, 87.4 million, acres in 2022, and the record 90.2 million acres in 2017. The highest increase in the estimated 2026 soybean acreage compared to 2025 was in South Dakota with an expected increase of 500,000 acres, followed by Iowa with an increase of 450,000 acres, and Nebraska with an increase of 350,000 acres, along with increases of 300,000 acres in Kansas, 200,000 acres in Illinois, 170,000 acres in Wisconsin, 150,000 acres in Minnesota and North Dakota, and 50,000 acres in Indiana. Ohio and Missouri were the only major producing States to show a slight decrease in anticipated soybean acreage for 2026 (-100,000 acres each). 
WHEAT- The intended U.S. wheat acreage for 2026 is estimated at 43.8 million acres, down 3 percent from 45.3 million acres in 2025, 46.1 million acres in 2024 and 49.6 million acres in 2023. Spring wheat acreage for 2026 was estimated at about 9.4 million acres, which is down 6 percent from nearly 10 million acres a year ago. 2026 Spring wheat acres are expected to decrease by 10 percent in Minnesota, 8 percent in North Dakota, and 4 percent in South Dakota, compared to 2025 acreage. 
Highlights from the March 31st USDA Grain Stocks Report: 
CORN - The total U.S. corn stocks on March 1, 2026, were listed at just over 9.02 billion bushels, which is an increase of 9.7 percent from a year earlier, and was slightly below the average grain trade estimate. The report indicated that farmers were holding 5.43 bushels of corn inventory in on-farm storage, which represents about 61 percent of the total corn stocks, and is up 21 percent from a year ago. One positive in the USDA grain stocks report was that the implied corn usage from December, 2025 through February, 2026 was 4.28 billion bushels, which was up about 8.4 percent compared to the same quarter a year ago. The improved corn usage numbers are a reflection of strong corn demand for ethanol production and solid corn export levels. The overall corn stocks level remains relatively high, which may limit potential for significant price rallies for the 2025 unpriced corn that is still in storage. 
SOYBEANS - Soybean stocks on March 1, 2026, were listed at just over 2.10 billion bushels, which is up 9.2 percent from a year ago, and was comparable to the pre-report estimates by grain trade analysts. Just over 1.2 billion bushels, or 58 percent of the total soybean stocks, were held in on-farm storage. The total U.S. soybean usage from December, 2025 through February, 2026 was estimated at 1.18 billion bushels, which was nearly the same as a year earlier. Soybean usage  numbers have been bolstered by improved soybean crush numbers; however, that has been offset by lower levels of soybean exports. There has been more optimism in the soybean export market in recent months, which has resulted in some improvement in the soybean prices in recent weeks. 
WHEAT- Total wheat stocks on March 1, 2026, were listed at about 1.3 billion bushels, which is up approximately 4.9 percent from March 1, 2025. This was the third year in a row that the level of wheat stocks have shown an increase on a year-over-year basis. The implied U.S. wheat usage in the past quarter was 4.28 million bushels, which was up about 10.4 percent from the same quarter a year ago. The stronger wheat usage numbers, together with the anticipated lower wheat acreage in 2026, has created some optimism for improved wheat prices in the coming months. 
Corn market prices on the Chicago Board of Trade (CBOT) did not show much movement in either direction following the release of the USDA reports. Nearby CBOT corn futures closed at $4.58 per bushel on March 31, which compares to $4.57 per bushel in 2025, $4.42 per bushel in 2024 and $6.60 per bushel in 2023. New crop CBOT December corn futures on March 31 closed at $4.82 per bushel, compared to $4.42 per bushel in 2025, $4.76 per bushel in 2024 and $5.66 per bushel in 2023. Nearby CBOT soybean futures closed at $11.71 per bushel following the USDA report on March 31, compared to $10.15 per bushel in 2025, $11.91 per bushel in 2024 and $15.05 per bushel in 2023. New crop CBOT November futures closed at $11.57 per bushel on March 31, compared to $10.19 per bushel in 2025, $11.86 per bushel in 2024 and $13.20 per bushel in 2023. 
The March 31st USDA report was based on producer surveys of planting intentions in early March; however, there is potential for these planting expectations to be adjusted slightly when final crop planting numbers are released later this year. The war in Iran began at the end of February, and most of the impacts on fertilizer supplies and prices have taken place since the survey data was collected. These impacts may cause some changes in final crop acres in some portions of the U.S. In the 2025 Planting Intentions Report, USDA estimated total corn acreage at 95.3 million acres on March 31; however, the final 2025 corn acreage was 98.8 million acres, or an increase of 3.5 million acres. 
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone --- (507) 381-7960; E-mail --- [email protected]

Due to the high cost of investment in farm machinery, an ever-increasing number of farm operations are hiring other farm operators to provide some or all of their machinery resources for their farm operation. This is especially true with new and younger farm operators, as well as with children that decide to start farming with their parents. In addition, some land investors are choosing to operate a farm themselves rather than cash renting the land to someone else, thus hiring another farm operator under a custom farming agreement for farming practices.
Custom farming agreements usually include tillage, planting, some weed control, harvesting, and delivering grain to a specified location. Some farm operators also hire custom work for specific farm operations with another farm operator, such as planting, combining, or tillage. Many farm operators negotiate these types of custom rate and custom farming arrangements prior to planting each year, while others wait until harvest is completed.
One of the best resources for average custom rates is the annual “Iowa Farm Custom Rate Survey” that is coordinated and analyzed by Iowa State University. Earlier this year, 205 custom operators and farm managers responded to the 2026 survey, submitting nearly 4,700 expected custom farm rates for various farm operations in 2026. The survey summary lists the “average” and “median” custom rate, as well as a range, for various tillage, planting, fertilizer and chemical application, grain harvesting, and forage harvesting functions on the farm. The “median” rate, which is most commonly used in custom rate negotiations, means that half of the reported rates were higher and half were lower than the listed rate. The survey also includes custom farming rates for corn and soybeans, as well as many miscellaneous farming practices, average per hour farm labor rates, and includes a formula for calculating rental rates. The average custom rates for farm operations in most areas of the Upper Midwest tend to be very close to the Iowa rates.
Average 2026 farm custom rates for some typical tillage, planting, and harvesting practices, as well as custom farming rates, are listed in the adjoining Table. The complete 2026 “Iowa Farm Custom Rate Survey” for all farming practices is available on-line at the following Iowa State University web site: https://www.extension.iastate.edu/agdm/crops/html/a3-10.html
Based on the survey, the average custom rates for harvest operations in 2026 were expected to increase by nearly 6 5 percent, compared to the rates in 2025, while average custom rates for tillage, planting, and other pre-harvest operations are expected to increase by about 8.5 percent. The 2026 custom farming rates for corn and soybean production are expected to increase slightly compared to a year earlier, following an increase of nearly 20 percent in recent years. The cost for new and used machinery increased in 2025, along with continued high repair costs, labor charges, and interest rates. It should be noted that custom rate survey was completed prior to the initiation of the conflict in Iran, which may result in custom operators adjusting their final custom rates by year-end, in order to more fully reflect any changes in fuel costs and other expenses for custom operations.
All listed custom rates in the Iowa Survey results include fuel, labor, repairs, depreciation, insurance, and interest, unless listed as rental rates or otherwise specified. The average price for diesel fuel was assumed to be $2.89 per gallon. A fuel price increase of $.50 per gallon would likely cause most custom rates to increase by approximately five percent. These average or median rates are only meant to be a guide for custom rates, as actual custom rates charged may vary depending on changes in fuel costs, availability of custom operators, timeliness, field size, etc. There are also many other specific situations among farmers and family members that share farm machinery that could also lead to adjustments in final custom rates.
Note --- For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Phone --- (507) 381-7960; E-mail --- [email protected]
 
SELECTED 2026 FARM CUSTOM RATES
Following are the “Median” custom rates for some common farming practices for 2026, as well as the (range) of custom rates listed, based on the “Iowa Farm Custom Rate Survey” ……
Note --- “Median” means that half of the reported rates were higher, and half were lower than the listed rate.
Custom Farming Rates (includes tillage, planting and harvesting costs):
· Corn ------------ $165.00 per acre (Range = $75 - $375 per acre)
· Soybeans ------- $155.00 per acre (Range = $65- $353 per acre)
· Small Grain ---- $167.00 per acre (Range = $70 - $290 per acre)
Tillage:
· Moldboard Plow ---------- $21.00 per acre ($14 - $24 per acre)
· Disk/Chisel ---------------- $23.00 per acre ($10 - $34 per acre)
· V-Ripper (deep tillage) --- $27.25 per acre ($15 - $40 per acre)
· Field Cultivator ------------ $19.00 per acre ($7.60 - $32 per acre)
· Tandem Disk --------------- $20.00 per acre ($10 - $30 per acre)
· Strip Tillage ---------------- $23.50 per acre ($15 - $30 per acre) (add $6/A. for anhydrous application)
· Chopping Cornstalks ----- $15 per acre ($8 - $20 per acre)
Planting and Spraying:
· Planter With Attachments ------- $27.50 per acre ($16 - $50 per acre)
· Planter Without Attachments --- $26 per acre ($15 - $38 per acre)
· No-Till Planter -------------------- $28.30 per acre ($15 - $46 per acre)
· Soybean Drill --------------------- $21.00 per acre ($14 - $28 per acre) ($25 per acre for no-till drilling)
· Cover Crop Drill ------------------ $19.25 per acre ($9 - $25 per acre)
· Crop Spraying (broadcast) ------- $10.50 per acre ($6 - $20 per acre) (self-propelled sprayer)
Harvesting Grain:
· Corn Combine ------------------ $45.00 per acre ($25 - $80 per acre) ($75/A. or more with grain cart and truck)
$50.00 per acre (with chopper head) (add $11/A. for downed corn)
· Soybean Combine -------------- $42.00 per acre ($24 - $70 per acre) ($70/A. or more with grain cart and truck)
$45.50 per acre with draper head) (add $4/A. for GPS mapping)
· Small Grain Combine ---------- $45.00 per acre ($35 - $65 per acre)
· Corn Grain Cart (in field) ------- $8.75 per acre ($3 - $22 per acre)
· Soybean Grain Cart (in field) --- $8.00 per acre ($2 - $19 per acre)
· Hauling Grain (5 mi. or less) --- $.12 per bushel ($.06 - $.50 per bushel)
· Hauling Grain (5-25 mi.) -------- $0.20 per bushel ($.09 - $.35 per bushel)
· Grain Drying (cont. flow) ------- $0.06 per point per bushel (incl. fuel, electricity and labor)
· Farm Bin Rental ----------------- $0.15 per bu. per year ($.10 - $.45/bu./year) (or $.03/bu./month)
Harvesting Forages:
· Mowing/Conditioning Hay ---------- $17.00 per acre ($10 - $25 per acre)
· Hay Baling (large round bales) ----- $12 per bale ($11 - $19 per bale) ($16 per bale with wrap)
· Corn Stalk Baling (large bales) ----- $14 per bale ($10 - $20 per bale) ($16 per bale with wrap)
· Silage Chopping ---------------------- $9.50 per ton ($7 - $12 per ton) (or $77 per hour per head row)
Farm Labor Rates:
· General Farm Labor ---------------- $22.00 per hour ($15 - $40 per hour)
· Spraying & Harvesting Labor ----- $25.00 per hour ($15 - $40 per hour)
Table prepared by Kent Thiesse, Farm Management Analyst

In February, USDA released the latest “USDA Farm Income Forecast”, which appears to show some concern regarding prospects for 2026 U.S. farm income. As you “drill deeper” into the latest USDA data, there are some reasons for even greater concern in certain segments of the agriculture economy. USDA latest update reduced the estimated 2025 U.S. net farm income by $25 billion from the farm income estimate in September, 2025, and projected an even lower net farm income for 2026. The USDA report also highlighted the continued increase in production expenses in agriculture, and the relatively high level of government payments. In should be noted that this report was released prior to the added farm economic concerns related to current war in Iran.
According to the latest U.S. farm income report that was released by the USDA Economic Research Service (ERS) in early February, the 2025 U.S. net farm income is estimated at $154.6 billion, which is down about $25 billion from the September estimate. The recent USDA summary lowers the projected 2026 U.S.net farm income downward an additional $1.2 billion to an estimated $153.4 billion. The record U.S. net farm income was $186 billion in 2022, with the record farm income being largely due to high crop commodity prices, modest crop expenses, and very strong crop profit margins. The projected 2025 and 2026 net farm income is mainly due to profitability of livestock production and large levels of government farm program payments.
In the recent farm income report, USDA revised the estimated total U.S. net cash income for 2025 downward to $153.9 billion, which is a decrease of nearly $27 billion from the September projection. The 2026 net cash income projected to increase slightly to $158.5 billion. Net cash income includes cash receipts from all farm-related income, including government payments, minus cash expenses for the year. Net farm income is accrual-based, which includes adjustments in the cash income for changes in inventories, depreciation, and rental income. Generally, net farm income is usually a more true measure of overall profitability in the farm sector.
Following are some observations from the latest USDA Farm Income Report:
• Overall, 2025 cash receipts for all commodities on U.S. farms is now estimated at near $529 billion, which is expected to decline slightly to $514.7 billion in 2026.
• Total 2026 crop receipts are estimated at nearly $240.6 billion, which is slightly above 2025 levels. Following are the estimated 2026 cash receipts for various crops, compared to 2025 and 2024 receipt levels:
Corn = $63.7 billion (2026); $61.6 B (2025); $66.4 B (2024)
Soybeans = $44.5 billion (2026); $44.5 B (2025); $46.3 B (2024)
Wheat = $9.5 billion (2026); $9.86 B (2025); $11.2 B (2024)
Cotton = $5.4 billion (2026); $5.4 B (2025); $5.2 B (2024)
Fruits & Nuts = $33.4 billion (2026); $33.0 B (2025); $31.3 B (2024)
Vegetables & Melons = $26.2 billion (2026); $25.5 B (2025); $25.1 B (2024)
• Total 2026 livestock receipts are estimated at nearly $274 billion, which is about $17 billion lower than 2025 levels. Total U.S. livestock receipts in 2026 are expected to surpass total crop receipts for the third straight year (2024-2026), which has not occurred in the past twenty-five years. Following are the estimated 2026 livestock receipts for various livestock, compared to 2025 and 2024 receipt levels:
Cattle & Calves = $133.1 billion (2026); $127.9 B (2025); $112.1 B (2024)
Milk & Dairy Products = $42.5 billion (2026); $48.7 B (2025); $50.7 B (2024)
Hogs = $29.3 billion (2026); $29.5 B (2025); $27.3 B (2024)
Broilers = $45.4 billion (2026); $44.7 B (2025); $45.4 B (2024)
Eggs = $8.9 billion (2026); $26.2 B (2025); $21.0 B (2024)
• The significance of government payments on net farm income and net cash income levels increased dramatically in 2025, and is expected to increase even more in 2026.This is largely due to a combination of one-time 2024 economic assistance payments (ECAP) and 2025 Farmer Bridge Assistance (FBA) payments, and the 2023 and 2024 disaster assistance payments (SDRP I & II). Regular farm program payments (PLC & ARC-CO) are also expected to be higher in 2025 and 2026 in some sectors, due the enhancements in the Title I provisions that were included in the “One Big Beautiful Act” (OBBA) that was enacted by Congress in 2025. There are also regular CRP payments, dairy margin coverage payments, and other traditional government payments. Following is listing of the Net Farm Income (NFI) for 2020-2026, and the total amount of estimated government payments (GP) for 2020-2026 (along with the % of the total net farm income from government payments):
2026 = $153.4 billion NFI, $44.3 billion (GP), (28.9% from GP)
2025 = $154,6 billion NFI, $30.5 billion (GP), (19.7% from GP)
2024 = $128 billion NFI, $11 billion (GP), (8.5%from GP)
2023 = $156 billion NFI, $12 billion (GP), (7.7% from GP)
2022 = $186 billion NFI, $16 billion (GP), (8.6% from GP)
2021 = $142 billion NFI, $26 billion (GP), (18.3% from GP)
2020 = $96 billion NFI, $46 billion (GP), (47.9% from GP)
• Total farm expenses are estimated at $477.6 billion in 2026, which is an increase $3.5 billion from 2025, and is $20 billion above 2024 expense levels. The projected 2026 total farm expense level is over 30 percent above the total expense level in 2020. The cost of purchased livestock, especially feeder cattle, is expected to see the greatest increase in 2026. Other farm expenses expected to increase in 2026 include fertilizer, labor, repairs, and property taxes. Seed, pesticides, and land rent are expected to stay fairly steady with a year earlier, while the cost of feed, fuel, and interest are expected to decline slightly in 2026. The continued higher level of crop input costs, together with lower commodity prices, points to the negative profit margins facing crop producers in 2025 and 2026. On the other hand, the low commodity prices have reduced feed costs, resulting in improved profitability in livestock production.
The U.S. net farm income projections by USDA for 2025 and 2026 probably appear to be better than probably actually exist in many areas of the country. The very high net farm income levels from 2021 to 2023 were primarily driven by some of the highest crop prices in the past decade, along with very manageable farm production expenses and low interest rates. The relatively high projected farm income levels for 2025 and 2026 are largely the result of record cattle prices, strong livestock profitability, and a very high levels of government farm program payments. Many of these government payments are one-time ad-hoc payments. The projected crop receipts for 2025 and 2026 are actually the lowest in recent years and the predicted overall profit margins for crop production this year are the poorest since the 2016-2020 period. The above average corn and soybean yields that existed in several areas of the Upper Midwest in 2025 certainly helped soften the potential negative profit margins for many farm operators in those areas.
There are some certainly some “yellow caution flags” in net farm income and profitability levels revealed in the latest USDA farm income report for the U.S. farm sector as we look ahead to 2026. A big key going forward will be if we see some improvement in crop prices during the next 6-12 months. This will likely depend on the level of U.S. demand and consumption, as well as the strength of U.S. export markets to China, Mexico, Canada, and other countries. Another key to farm profitability in 2026 will be what impact the war in Iran and potential tariffs have on farm production expenses, as well as the future direction of land costs, and interest rates during the coming year. In addition, final 2026 farm income and profitability will likely depend on the amount of ad-hoc short-term farm program payments, as well as the financial impact provided by the improved “safety-net” provisions in the “One Big Beautiful Act”.
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone - (507) 381-7960; E-mail - [email protected]

In mid-February, the U.S. House Agriculture Committee Chairman, Congressman Glenn (GT) Thompson (R-PA) released the text for the revised version of the U.S. House Farm Bill, which is titled: “Farm, Food and National Security Act of 2026” (FFSNA), or so-called “Skinny Farm Bill”. The House version of the Farm Bill was reviewed and was approved by the entire U.S. House Agriculture Committee by a vote of 34-17. The proposed Farm Bill was approved by all Republican members of the Ag Committee. as well as by seven Democratic members of the Committee; however, there was strong opposition to the proposed Bill by the Democratic leadership on the Ag Committee. More details on the U.S. House Farm Bill can be found at: https://agriculture.house.gov/farmbill/
The 2023 crop year was set to be the final year for the 2018 Farm Bill; however, the 2018 Farm Bill has received three one-year extensions for the 2024, 2025 and 2026 federal fiscal years, and will now expire on September 30, 2026. Farm Bills are one of the most comprehensive pieces of legislation that are passed by Congress, with programs ranging from farm commodity programs to food and nutrition programs, from conservation programs to rural development programs, and several more. In many cases, finalizing a Farm Bill can be quite controversial, both along political party lines and geographical differences, with members of Congress wanting to protect the farm, food, conservation, and economic interests of their State. The so-called “skinny” Farm Bill covers all titles and provisions normally in the Farm Bill, including the commodity, crop insurance, and nutrition title provisions that were included in the “One Big Beautiful Act” (OBBA) that was passed by Congress in 2025.
The OBBA that was passed in 2025 provided $389 billion in funding over ten years for numerous USDA programs, including several Farm Bill Title I and Title IX provisions that are related to commodity programs and crop insurance. Following are changes that were enacted through the OBBA legislation that are included in the Farm Bill:
Title I - Commodity Programs
­• The statutory (minimum) reference prices were increased by 10 to 20 percent for all farm program crops, beginning with the current 2025 crop year. Following are the increases in statutory reference prices for some common crops:
Corn - $4.10 per bushel (up 11 percent from $3.70/bu.)
Soybeans - $10.00 per bushel (up 19 percent from $8.40/bu.)
Wheat - $6.35 per bushel (up 15 percent from $5.50/bu.)
• The existing formula for calculating the effective reference price (ERP) for a given commodity in a given year continues to be the greater of 85 percent of the “Olympic average” national market year average (MYA) price for the previous five years or the statutory reference price for a crop. For example, the current corn ERP for the 2025 and 2026 crop years is $4.42 per bushel, while the soybean ERP for 2025 and 2026 is $10.71 per bushel. The ERP cannot exceed 115 percent of the statutory reference price.
• Increases the ARC-CO guarantee to 90 percent of the benchmark (BM) revenue (formerly 86 percent). The BM revenue is the county BM yield time the BM price (5-year “Olympic” average price). The maximum ARC-CO payments increase to 12 percent of the ARC-CO revenue (formerly 10 percent).
• Increases the marketing assistance loan (MAL) rates for most commodities by 10 percent.
• Allows for the addition of up to 30 million new crop base acres, targeting farms that currently have no base acres, or that have planted more acres to program crops in recent years than the existing base acres. This provision would not affect existing crop base acres.
• The farm program payment limit has been increased to $155,000 for any eligible individual or entity (formerly at $125,000). The payment limit language was also adjusted to put farm LLC business structures under the same criteria as exists for farm general partnerships for payment limit purposes.
Title XI - Crop Insurance
• The OBBA increased the federal premium subsidies by 3 to 5 percent for most coverage levels of individual crop insurance. Additional premium reductions were also added for beginning farmers during their first ten years of farming.
• The premium subsidy for both the Supplemental Crop Option (SCO) and Enhanced Coverage Option (ECO) crop insurance was increased an 80 percent subsidy level. The SCO coverage will increase to 90 percent in 2027 (currently at 86 percent), while ECO offers 95 percent coverage. SCO coverage is now available with either the PLC or ARC-CO farm program choice (formerly only available with PLC).
Key provisions for other Titles in the “Skinny” Farm Bill:
• Title II – Conservation - The OBBA addressed some provisions for EQIP, CSP, and ACEP programs; however, it did not address the Conservation Reserve Program (CRP). The proposed Farm Bill will maintain maximum CRP acres at the current level of 27 million acres through 2031.
• Title III – Trade - Broadens USDA’s role in for trade and food aid programs.
•Title IV – Nutrition - The OBBA made several changes to the Supplemental Nutrition Program (SNAP). The proposed Farm Bill calls for more USDA commodity purchases from local producers for school and food aid programs.
• Title V – Credit - The FFSNA would increase the maximum loan levels for Direct and Guaranteed FSA loans, as well adjusting criteria for FSA beginning farmer loans.
• Title VI – Rural Development - The proposed Farm Bill reauthorizes and expands many USDA programs related to rural electricity, water and sewage systems, broadband connection, fire departments, and other rural infrastructure. This Title also supports small business loans and grants, rural childcare programs, and many other programs important to rural communities.
• Title VII – Research, Extension & Education --- This title authorizes USDA funding for agricultural research and extension service programs through the land grant universities in various States. There is also special funding to support rural mental health services and programs.
•  Title VIII – Forestry - Focuses on USDA programs related to forest management and stewardship programs, wildfire prevention, agroforestry initiatives, and other Forest Service programs.
• Title IX – Energy - Authorizes funding for USDA research related to sustainable aviation fuel (SAF); however, the FFSNA did not address the nationwide implementation of year-round 15 percent ethanol blends, or any other items related to expanding the use of biofuels.
• Title X – Horticulture - This title authorizes USDA funding for programs for fruits and vegetables, specialty crops, organic production, urban agriculture, etc. The proposed Farm Bill would limit the ability of States to regulate certain pesticides and crop protection products that are federally registered.
• Title XII - Miscellaneous - This Title includes a broad set of USDA programs addressing animal health and diseases, supply chain and national security issues, and emergency preparedness. One of the more controversial provisions in the FFSNA would restrict States from enacting legislation dictating animal production practices that could impact interstate trade of agricultural products, such as the Proposition 12 legislation in California.
The passage of the “skinny” Farm Bill by the U.S. House Agriculture Committees is the first step toward the possible completion of a Farm Bill by the end of 2026; however, many steps remain to complete that process. The Farm Bill will need to be approved by the entire U.S. House and the U.S. Senate, before ultimately sending it to the President for final approval. There are likely to be several amendments and proposed revisions to the FFSNA before a final Farm Bill is finally passed. This may be difficult to accomplish in 2026, given the current political divide that exists.
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone --- (507) 381-7960; E-mail --- [email protected]

Sign-up for the Farmer Bridge Assistance (FBA) program began on February 23 at local Farm Service Agency (FSA) offices and will continue until April 17. A total of $12 billion was allocated for the FBA program to provide economic assistance payments to producers of certain crops to offset low prices and poor profit margins for the 2025 crop year, as well as the market price impacts from tariffs on export markets for certain crops in the past year. Of that total, $11 billion of the payments will be paid to producers of traditional farm program Title I crops, which includes corn, soybeans, wheat, cotton, and rice. The remaining $1 billion will be held back for economic assistance for specialty crop producers.
FBA Sign-up Procedures
 
Eligible crop producers will receive a pre-filled FBA application form listing the eligible 2025 crop acres, based on the crop acreage report that was submitted to the FSA office. Producers only need to complete one FBA application for all eligible crops, regardless of the farm location in any county or State. Farmers can receive their FBA application form either in person at their local FSA office, or they can receive their FBA application using the FSA online system. Farmers with an existing FSA online account are able to sign-up for potential FBA payments by accessing their existing FSA account. Other farmers will also be able to set up a new online account prior to enrolling in the FBA program. For more information on the FSA online accounts, farmers should go to the following website: www.farmers.gov/account.
Once producers receive the FBA application, they should verify that the data in the application is correct and the sign the form. The completed FBA application may be submitted to FSA using the FSA online system, via email or fax, or in person at local FSA offices. In addition to submitting the FBA application on a timely basis, producers must have completed several other forms required by FSA. Most farmers that routinely receive farm program payments will likely already have these payments on file at local FSA offices. Following are the required FSA forms in order to receive FBA and other FSA payments:
• AD-1026 -Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) Certification.
• Form CCC-941 - Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information.
• Form CCC-901 - Member Information for Legal Entities.
• Form CCC-9021 (if applicable) - Farm Operating Plan for an Individual.
• Form CCC-941 (if applicable) - Farm Operating Plan for an Entity.
• SF-3881 - Miscellaneous Payment Form (Direct Deposit authorization).
 
FBA Payment Rates for Various Eligible Crops
• Corn - $44.36 per acre
v Soybeans - $30.88 per acre
• Wheat - $39.35 per acre
• Oats - $81.75 per acre
• Barley - $20.51 per acre
• Peas - $19.60 per acre
• Sorghum - $48.11 per acre
• Cotton - $117.35 per acre
• Rice - $132.89 per acre
• Peanuts - $55.65per acre
FBA payment rates were also announced for canola, chickpeas, flax, mustard, safflower, sesame, and sunflower.
 
How FBA Payments were Calculated
FBA payments will be based on the 2025 planted acres of eligible crops, as reported to local Farm Service Agency (FSA) offices on or before December 19, 2025. For double-crop acres, both the first crop and subsequent crop are eligible for FBA payments (for example peas followed by soybeans); however, any prevent plant acres in 2025 are not eligible for the FBA payments The payment amounts for each crop were based on the national average yield times the projected 2025-26 market year average (MYA) price in the December 9, 2025 WASDE report, minus the 2025 average production cost for a commodity, based on USDA Economic Research Service (ERS) data. The MYA prices in the December WASDE report included $4.00 per bushel for corn, $10.50 per bushel for soybeans, and $5.50 per bushel for wheat.

Payment Limits for FBA Payments
The payment limit for the FBA payments will be $155,000 per eligible person or legal entity. There will not be higher payment limits based on having 75 percent of taxable income received from farming enterprises, similar to some previous FSA programs. Entities such as corporations, LLC’s, S corporations, and trusts will be limited to one payment limit of $155,000. Any person or legal entity with an adjusted gross income (AGI) exceeding $900,000, based on FSA criteria, will not be eligible to receive any FBA payments.
Following are examples of the estimated acres required to reach the $155,000 payment limit with various crop mixtures of corn, soybeans, and wheat:
· 100% Corn ($44.36/A.) = 3,494 acres
· 100% Soybeans ($30.88/A.) = 5,019 acres
· 100% Wheat ($39.35/A.) = 3,939 acres
· 2/3 Corn; 1/3 Soybeans (ave. $39.86/A.) = 3,889 acres
· 1/2 Corn; 1/2 Soybeans (ave. $37.62/A.) = 4,120 acres
· 1/3 Corn; 1/3 Soybeans; 1/3 Wheat (ave. $38.20/A.) = 4,058 acres
 
Details on the ASCF Program for Specialty Crops
An additional $1 billion has been allocated for the Assistance for Specialty Crop Farmers (ASCF) program, which will provide payments to a wide range of crops not covered by the FBA program. This includes most fruits, vegetables, nuts, horticulture crops, etc. Producers of dry edible beans and peas are eligible for FBA payments and should complete out a FBA application, as they will not be eligible for ASCF payments. There will also be separate payments for sugar beet and sugarcane producers. Similar to FBA payments, ASCF payments will be based on 2025 planted acres of various specialty and sugar crops. Specialty crop acreage must be reported to local FSA offices by March 13, 2026. Following that, payment rates and sign-up details will be announced for the ASCF program.
 
More Information on the FBA Program or the ASCF Program
Farmers that submitted their application for the FBA program shortly after February 23 reported receiving their FBA payments within a few days. Farmers with specific questions on the application process for either the FBA program or the ASCF program, or regarding payment procedures, should contact their local FSA office. For more information on the FBA program requirements, payment rates, payment limits, etc., as well as updates on the ASCF program, farmers can go to the USDA FBA website at: https://www.fsa.usda.gov/resources/programs/farmer-bridge-assistance-fba-program
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone --- (507) 381-7960; E-mail --- [email protected]