by Jordan Howe
Earning a profit has been a challenge for many growers over the last two seasons. While the USDA forecast 2025 production expenses to decline marginally — by 0.6% from 2024 — the expected decline in commodity prices is much steeper.
Economists at Iowa State University Extension and Outreach predict corn prices to be almost 5% lower than they were in 2024, and soybeans to be 7.4% lower. This is creating a profitability gap for growers. Even though it’s costing less to produce a crop because of depressed commodity prices, growers have even more work to do to close the gap.
Exacerbating these financial challenges, growers also have to contend with Mother Nature and difficult conditions resulting from persistent drought and unseasonably hot, dry weather. These environmental challenges require growers to consider additional investments in their crop-management plans, putting profitability further out of reach.
Growers throughout our region are looking for every opportunity to make their numbers work more favorably. Some of the critical variables for earning a profit are beyond a grower’s control — like how much they’ll be able to get for a bushel of corn come harvest — but there still are ways to proactively improve your position.
Two strategies I see many growers overlook or underutilize are:
- accessing discounts on products they need
- sharing a complete view of their financial position with people in their inner circle — partners they trust who also have their best interests in mind
Secure the best price
If you’re tracking your breakeven point, cost per acre and cost per bushel, you should have good information to assess your financial health and capacity to invest in next year’s crop. Given the strength of this year’s financial headwinds, early purchasing may not be an option for everyone, but if you have capital to secure next year’s seed now, you’ll have the opportunity to pursue cost-effective pricing and interest rates.
For example, at Nutrien Ag Solutions, we have corn and soybean seed programs that run from Aug. 1 to Aug. 31, offering customers product discounts for ordering early. Growers who go this route and leverage financing programs to pay for their seed get an added benefit.
On top of the cash-flow solutions that input financing brings, growers who shop early also get the advantage of accessing the season’s best financing rates, which translates to lower interest expense. As we move further into the season, these discounts and rates will change, and while they still provide an advantage to growers, those who act early put themselves in the strongest position to save on their seed purchases. In this case, the early bird gets the worm.
We can’t predict when the market will rebound, but growers who shop early and capitalize on the discounts and promotional rates offered this time of year have more options, which supports increased financial flexibility and a better chance of earning a profit in 2026.
With any luck, we might imagine a more positive economic outlook next year, and the boost to your bottom line could be even more significant if you leverage these discounts now.
Trust your partners, and offer transparency
Beyond the transactional benefits of discounts and promotions, growers also can improve their financial position by tapping into resources from their network and investing time and energy in relationships that can affect the bottom line.
We often see this scenario play out with our customers: They will hold their cards close and shy away from sharing details of their financial position with partners. Or, if they do lay some of their cards down, they do so in isolation, making it difficult for those partners to understand what options serve their best interests.
Instead, I always recommend that customers talk to their crop consultant, and any vendors who support their operation, to share details about their crop goals, budget capacity and cash-flow needs. Given how complex the profitability equation has become, involving your inner circle in a broad strategy that aligns agronomic and financial goals will support better decision-making and help advance your operation.
Engaging in these conversations about where you are and where you want to be with honesty and transparency is important. It will ensure everyone in your inner circle is on the same page when it comes to the details that will enable your success.
It may not be the easiest thing you do this year, but, at the end of the day, you should feel comfortable leaning into the relationships you’ve established. These people are invested in your success, and in most cases, their own success depends on you meeting your profitability goals. In this way, we can all benefit from open and transparent relationships where everyone is working toward the same outcome: your success.
Howe is an area manager with Nutrien Financial and oversees operations across the Corn Belt, western U.S. and Canada. He provides leadership and innovative solutions to help growers increase their buying power and maximize every opportunity for success. Learn more at nutrienfinancial.com.