High Rents Force Early Budget Decisions

An article on AgWeb

Production costs for 2027 are already being set, even before many farmers have started harvesting the 2026 crop.

For row-crop producers, land represents a major share of the budget. USDA-ERS data shows land accounts for 20 to 40% of production costs. That means by Sept. 1 — when lease termination deadlines arrive in states such as Ohio, Iowa, Nebraska and South Dakota — many farmers will already have a large piece of next year’s production budget in motion.

The calendar has not changed, but the stakes have. With land costs already representing a large share of row-crop expenses, fall lease deadlines are forcing producers and landowners to make 2027 budget decisions before the 2026 crop is fully known.

With input costs still high and crop prices under pressure, Iowa farmer Ben Riensche says land is top of mind.

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