Profit margins are always tight for farmers, with some years feeling tighter than others. However, there’s almost always a way to look through those margins and find the best profit levels possible. Chad Hart, Iowa State University professor of economics and ISU Extension and Outreach grain markets specialist, said both corn and soybeans are near the break-even prices this year.
While it’s likely that plenty of grain will be sold soon due to the recent market rallies, Hart said that farmers are also going to be planning out their selling strategies for harvest and even next spring soon.
With the upcoming planting reports, Hart said he expects to potentially see higher planting numbers for both corn and soybeans.
Even though margins are going to remain tight this year, Hart said there will be some slight relief with lower input costs.
For more on the ag economy, visit the Iowa State University Ag Decision Maker at https://www.extension.iastate.edu/agdm/.
