By Michael Langemeier, Michael Boehlje, and Joana Colussi
Successful Farming
Midwest crop producers have experienced a significant downturn in corn, soybean, and wheat prices since late 2023, resulting in a drop in net returns in 2024. Moreover, current expectations are that prices will continue to remain at or below the cost of production for at least a couple more years. Consequently, a key question being asked is as follows: “Who is the most vulnerable financially during this downturn”? To explore this question, we analyze farm-level financial data from the Farm Financial Management (FINBIN) database, focusing on operating profit margins and debt-to-asset ratios, to identify which operations face the greatest risk as the downturn deepens.