by Jordan Howe
Successful growers know that profits are built in the nuanced details of agronomic and economic plans, and now is the time that most growers are starting to pencil out what those plans will look like for the 2026 season.
For the past two years, growers have had to plan for tough and unstable conditions, thanks in part to increasing costs and declining prices. Thankfully, because of the cyclical nature of the ag industry, we know these conditions are not permanent. With any luck, we will start to see variables shift to create a more favorable environment for growers in 2026.
There are several indicators we can look to to feel a bit more optimism, including the strong yield brought in for 2025’s crop, interest rates in decline and projections that net farm income will increase. The profitability equation for 2026 still will be challenging, but there are resources, data and perspectives that may afford growers a more positive outlook as they make their plans for the year ahead.
Let’s explore some of the factors that may impact 2026 crop and financial plans. Here are three key strategies to get ahead:
1. You’re planning for one year, but keep your perspective focused on the long term. Growers’ liquidity is expected to rise this year. Land values are holding strong, which is a key differentiator between today’s economic challenges and the notoriously difficult farm economy of the 1980s.
If you only look at economic data from the last year or two, things look bleak. Instead, pull back and consider the last 10- or 15-year cycle to help shape your perspective. Remember, ag is like any commodity market; it moves in cycles, and the valley can’t persist forever.
It’s prudent to build a conservative financial plan to cover your bases, but look for those signs of a market rebound where you might be able to capitalize on new opportunities.
2. Declining interest rates may offer more opportunities to invest in your operation. Historically, stronger farm income has coincided with periods of declining interest rates, as we saw in October. When financing cost decreases because of lower interest expenses, it is one factor that can result in growers having more liquidity to reinvest in their operations or reduce their debt.
Many growers have taken on more debt to manage operational expenses. The more a farm relies on debt, the more noticeable the impact of rate decreases will be. If rates continue to drop, lowering interest expenses, growers may begin to feel like they can start climbing out of the economic valley they’ve been in.
3. Mindset matters. Opportunities exist in any market for growers to maximize their financial position. It starts with planning, including paying attention to all the details and working with experts who can influence the bottom line in your favor.
If you haven’t already, now is a good time to get in touch with the people in your network who can help you explore solutions to optimize yield and minimize expenses. This might mean changing up details of your crop plan, updating your capital management strategy to increase buying power or reducing interest expenses.
As we head into 2026, growers have an opportunity to build on lessons learned during the current downturn and assess their position with fresh perspective. With the new year upon us, it’s time to reflect on where you stand and explore all available options to positively impact your operation.
Whether market conditions improve or uncertainty persists, the decisions you make today will shape your farm's resilience and profitability in the year ahead.
Howe is an area manager with Nutrien Financial and oversees operations across the Corn Belt, Western U.S. and Canada. Learn more at nutrienfinancial.com.