Current cash prices are near or below break-even levels for most producers under average yield scenarios. FBA government payments will provide additional working capital for producers heading into 2026, likely increasing lenders’ confidence in extending operating loans to those struggling with significantly reduced profit margins.
Input costs remain largely unchanged from last year. However, factors such as yield potential, government payments, and declining interest rates are helping to prevent net farm incomes from falling in proportion to declining commodity prices. Despite this support, lower prices and returns are expected to remain in the near term.
