4 Key Strategies Grain Producers Need to Navigate 2026’s Tight Margins

Farm Credit East recently hosted CoBank Lead Economists, Tanner Ehmke and Jacqui Fatka, for the 2026 Grain and Biofuel Industry Outlook Webinar. With a high supply of corn, soybeans and wheat globally, producers are seeing tight margins and continued pressure. Read on for key strategies producers should keep in mind going into 2026.

Know your cost of Production

Margins will be tight in 2026 as corn and soybean producers continue to face high input costs and low commodity prices, with corn under the most pressure. Producers need to revisit costs like fertilizer rates, seed choices and agronomy spending to protect margins. The low-price grain environment is expected to persist, so mapping out costs and developing a plan will be key to financial resilience in 2026 and beyond.

Use Assistance Payments Strategically

The 2026 Farmer Bridge Assistance Payments will help with cash flow. However, projected to arrive in February, they will arrive at a time when producers have already purchased many inputs. Prioritizing liquidity and debt reduction over expansion or optional spending is recommended with these payments.

Watch Biofuel Policy Closely and Lean into Opportunities

When looking at biofuels, ethanol demand is a bright spot with exports up 25%. While the year-round E15 deal failed in Congress, future decisions on biofuel policy will significantly impact grain prices. In 2026, biofuel policy may be an important deciding factor for many producers as they chose between planting corn or soybeans.

Adjust Marketing and Planting Strategies for a Surplus Environment

With a global surplus environment, there is sustained price pressure. Producers need to adjust their grain marketing strategies accordingly. Many farmers sold soybeans early and decided to hold corn and wheat. Going into 2026, basis-only contracts will be increasingly popular while delayed pricing will be risky due to oversupply and higher fees.

Additionally, producers need to evaluate their planting strategy. Is there marginal ground that should be reduced, switched to lower-cost crops or used for cover crops? CoBank forecasts that corn and wheat acres will go down slightly and soybean acres will increase in 2026.

To dive deeper into the above topics, review the webinar recording along with the presenters’ PowerPoint slides, or read the 2026 Grain and Biofuel Industry Outlook.