AMES–Iowa corn and soybean producers continue to face tight margins heading into the 2026 growing season, according to the newly released Estimated Costs of Crop Production in Iowa – 2026 from Iowa State University Extension and Outreach.

The 2026 outlook reflects continued challenging economic conditions, with average market prices for corn and soybeans projected to remain below production costs. Opportunities for profit are expected to be limited, underscoring the importance of careful cost tracking and farm-specific planning.

The 2026 estimates show:

A 4% increase in corn production costs compared to 2025, largely driven by higher fertilizer and chemical expenses

A 2% increase in soybean production costs

Slightly lower projected land costs, partially offset by higher labor (1%) and machinery costs (3-4%)

“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.”

Tools for farm-specific planning

Producers are encouraged to go beyond statewide averages by using interactive spreadsheet budgets and web-based calculators available through Ag Decision Maker. These tools allow users to enter farm-specific prices, adjust yields, modify machinery and labor assumptions and evaluate 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.

To view the full publication, download Estimated Costs of Crop Production in Iowa: 2026 from the ISU Extension Store.

The ISU Extension and Outreach Farm Financial Planning Program provides one-on-one financial counseling and a confidential review of a farm’s financial information with trained associates.

No-cost, confidential support to help Iowans navigate stress, legal issues, financial challenges and crisis situations is offered by Iowa Concern. Iowans can talk to someone or get help finding the right resources anytime.