Farmers Reap Higher Prices, but Costs Keep Cutting Into Profits

University of Illinois agricultural economist Nick Paulson is optimistic about farmers' revenue outlook for 2026 and '27, thanks to rising commodity prices.

The prices are higher than what was projected in May and have not been seen since the 2023 crop year. Corn prices are expected to reach $5 per bushel for both years, while bean prices will be at or above $12 per bushel.

However, Paulson notes that production costs are increasing, with a significant rise in fertilizer and fuel costs attributed to the Iran conflict. He advises farmers to maximize profitability rather than yields, and to carefully evaluate capital purchases such as machinery and land.