Farmers Brace for Higher Costs

Production costs are climbing again as farmers prepare for the 2026 crop year. North Dakota State University Extension Ag Finance Specialist Bryon Parman says fertilizer, seed, and chemical prices are all trending higher, tightening margins for growers. “Some of it’s right at the rate of inflation, but incomes aren’t necessarily expected to go up at the same rate. Fertilizer can make up as much as 25 percent of corn production costs and up to 30 percent for canola. Even herbicides and overhead are rising. It’s looking like everything will be more costly across the board, and there just isn’t a lot of margin there that we’re expecting to be able to absorb.” Unless input costs ease or commodity prices rise sharply, Parman says 2026 could be another year of narrow margins for U.S. farmers.