JANUARY 23, 2026 | VOLUME 29 | ISSUE 2
Farm Bureau Press SIGNIFICANT FARM LOSSES PERSIST, DESPITE FEDERAL ASSISTANCE
A PEEK INSIDE
The USDA-Economic Research Service (ERS) December update to Commodity Costs and Returns provides a comprehensive look at per-acre production costs for the nine principal row crops: corn, soybeans, wheat, cotton, rice, barley, oats, peanuts and sorghum. At a high level, ERS projects average total costs per acre to increase for every crop in 2026, underscoring the persistence of elevated production expenses across U.S. agriculture. When operating expenses and farm-wide costs like equipment, land and management are combined, costs vary widely by crop. In 2025, forecasted total per-acre costs are $1,308 for rice, $1,166 for peanuts, $943 for cotton, $890 for corn, $658 for soybeans, $498 for oats, $491 for barley, $443 for sorghum, and $396 for wheat. Looking ahead, ERS projections for 2026 suggest continued upward pressure across most cost categories, with total cost increasing anywhere from 2.2% to 3.3%. Amongst the nine principal crops, wheat ($409 per acre), sorghum ($458) and oats ($513) remain at the lower end of the production cost spectrum, while soybeans ($678) and barley ($507) fall in the mid-range in 2026. Cotton ($965), peanuts ($1,194) and rice ($1,336) remain the most expensive crops to produce on a per-acre basis.
Elementary Ag Education Pilot Program, Page 2
Operating costs—expenses directly tied to producing a yearly crop, such as seed, fertilizer, chemicals, fuel and labor—substantially vary across crops. In 2025, total operating costs ranged from $155 per acre for wheat to more than $764 per acre for rice and $631 per acre for peanuts. In 2026, these costs are expected to rise, ranging from $774 per acre for rice and $160 per acre for wheat. While select inputs have moderated slightly from recent peaks, overall operating expenses remain well above pre-2021 levels. Rising costs since 2020 have been driven primarily by sharp increases in interest expenses (+71%), fertilizer (+37%), fuel and oil (+32%), labor (+47%), chemicals (+25%) and maintenance (+27%), alongside notable gains in seed (+18%) and marketing costs (+18%).
ArFB Young Farmers and Ranchers Conference, Page 3
FOLLOW US ONLINE
GET THE LINKS
Scan the QR code Against this backdrop of elevated costs, commodity prices have remained to access direct under pressure, limiting farmers’ ability to cover their costs through the links referenced marketplace alone. As a result, many farms are projected to experience losses in each article. for a fourth or fifth consecutive year, even after accounting for crop insurance indemnities and ad hoc assistance. Read more online. A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION