by Jordan Howe
Tight margins are starting to feel like more of a persistent operating condition than a temporary disruption. Market pressures that growers have been responding to for the past few years aren’t showing signs of shifting.
So, as we prepare for a new growing season in 2027, consider how you can make proactive plans to support liquidity, financial flexibility and broader farm management.
The National Corn Growers Association surveyed more than 1,200 corn and soybean growers in September. Amid a rally in prices, the survey shows that sentiment is still focused on the financial pressures growers are feeling, with 66% of respondents reporting they were moderately or very concerned about the farm economy.
Almost half (46%) were more worried about their own farm’s finances than a year ago, while only 9% were less concerned.
Despite better prices, the overall ag economy is still creating hurdles for growers, so hoping for a market fix in 2027 may not be the best course. Instead, growers can look for practical solutions that may ease some of the pressure on their bottom line.
While past generations may have been able to follow the sage advice of “buckling down and riding out the storm,” the complexity of success in modern ag requires a different and more proactive approach.
Financial decisions you control
If you move into 2027 with the understanding that tight margins are likely going to be an operating condition, you may also want to confirm that your strategy is backed by some basic financial building blocks:
Plan early. Evaluate your input needs and purchasing options well ahead of planting season so you have time to compare financing terms, available incentives and payment options before making commitments.
Consider liquidity position. Review your projected expenses, revenue and available working capital to identify opportunities to preserve cash and maintain flexibility throughout the growing season.
Think of diversifying capital. Consider how financing programs offered through agricultural retailers might complement your existing operating line of credit and provide additional flexibility for planned purchases.
Create strategic financing options. When you do use financing, be thoughtful about evaluating the total cost of financing, any financing-related incentives and repayment terms so you have confidence the offers you go with are aligned with your financial goals.
The goal isn't necessarily to change how much you borrow; it’s to make more deliberate decisions about when and how you use the capital available to your operation.
Who can help you decide?
The details surrounding a farm’s financial plan can be complicated, and there’s no silver bullet strategy that’s going to apply to every farm because each operation is unique. Managing these decisions increasingly calls for specialized expertise across multiple disciplines. It’s not a one-person job, as it may have been in the past.
It’s important to be intentional about the people who have a seat at your table as you’re putting the details of your farm plan together for next year. The modern farm management team might include your crop consultant or agronomist; your tax professional; one or multiple financial professionals; an accountant or bookkeeper; and other partners who provide expertise and specialization for areas of the operation like technology, marketing, real estate and legal support.
Ensure your operation has resources and capabilities to meet your goals by mapping each partner at your table to a piece of your 2027 farm plan. Your tax professional can be helpful with early planning. A bookkeeper is needed to ensure you have real-time visibility on your cash flow. Finance specialists can be helpful in evaluating various offers and programs, as well as helping you get the most value out of your capital.
As we prepare for 2027, consider where your operation stands today and what opportunities you have to strengthen your position for the season ahead. That might mean reviewing your liquidity, comparing financing options for planned purchases or bringing together the people who support your operation to identify potential gaps in your strategy.
No one can say with certainty when the farm economy will turn a corner, but you don't have to wait for that moment to evaluate your options, make adjustments and prepare for the future. Planning early and from a realistic view can go a long way to help you feel prepared for whatever the future holds.
Howe is an area manager with Nutrien Financial. He oversees operations across the Corn Belt, western U.S. and Canada and works with Nutrien’s team throughout the U.S. to provide leadership and innovative solutions to help growers increase their buying power and maximize every opportunity for success. Learn more at nutrienfinancial.com.