Corn Producers Struggle with Tight Margins and Rising Costs
Tight margins and rising input costs are affecting US corn growers, according to Krista Swanson, chief economist for the National Corn Growers Association.
The four factors impacting profitability, tight margins, rising input costs, shifts in global trading, and changing biofuels, are interconnected, said Swanson during a presentation at the Generations of Women in Agriculture Across America event. The US Department of Agriculture forecasts net farm cash income for 2026 to reach the 20-year average.
Farms have increased in size, machinery has become more sophisticated, and the cost of capitalizing a farm has risen significantly. This is causing farmers to feel the pressure, with fertilizer making up 30-40% of operating costs. The price of fertilizer can make a huge difference in the overall farm budget.
The US produces about 90% of nitrogen products used by farmers. Swanson explained that when there are global disruptions, such as the Strait of Hormuz closure, prices for fertilizers spike due to increased demand from other regions.