Soybeans Expected to Outperform Corn in 2027 Amid High Fertilizer Prices

The decision-making process for the 2027 crop has begun in earnest, and Midwest farmers are making acreage choices between corn and soybeans. Historically, soybeans have been more profitable than corn in most years since 2012, and this trend is expected to continue in 2027 due to various factors.

According to data from the University of Illinois at Urbana-Champaign, soybeans were more profitable than corn in all regions of Illinois, with Central Illinois being the most productive region. The profitability difference between the two crops can be attributed to revenue and cost components, with soybeans generally having lower costs on a per-acre basis.

One key factor contributing to soybeans' profitability is nitrogen fertilizer prices, which have been high since 2022. Corn uses more nitrogen fertilizer than soybeans, making it more expensive to produce. Additionally, general cost inflation is expected to continue into 2027, further increasing corn costs relative to soybeans.

Overall, the historical dynamics suggest that soybeans will be more profitable than corn in 2027, and farmers may wish to consider planting more soybeans as a result. The implications of this trend will vary by region, with rotations being affected differently depending on the specific conditions.