By Scout Nelson
According to the latest 2025 crop budget estimates released by the Center for Agriculture Profitability (CAP) at the University of Nebraska-Lincoln, crop production expenses are expected to decrease for the second consecutive year. Despite this trend, costs remain significantly higher than they were a few years ago, reflecting a partial retreat in the context of long-term increases.
The CAP's analysis covers 83 budgets across 15 different crops, incorporating various agricultural practices such as tillage methods, crop rotations, seed technologies, chemical applications, and yield goals.
The budgets differentiate between 'cash costs'—which exclude ownership costs of machinery and equipment as well as the real estate opportunity cost when land is owned—and 'economic costs', which include these opportunity costs along with depreciation.
For instance, the estimated per bushel costs for both dryland and irrigated crops like corn, soybeans, and wheat in 2025 show a general decrease compared to 2024. Notably, the costs for irrigated soybeans have remained stable at the low end of the range, maintaining at $10.04 per bushel.
Further details of these budgets and the assumptions behind them are accessible at the CAP website and the Ag Budget Calculator (ABC) program. These resources provide in-depth insights into the cost dynamics and are valuable tools for farmers planning their next agricultural cycle.
The latest USDA estimates suggest that crop prices will likely decline alongside these costs, with season average prices expected to be $4.10 per bushel for corn and $10.80 for soybeans throughout the marketing year ending in August 2025. Given these projections, achieving positive returns could be challenging for farmers in the next year.
This scenario underscores the need for careful financial and strategic planning by those in the agricultural sector, as they navigate both the opportunities and challenges presented by the current economic environment in farming.
Photo Credit:istock-pixeldigits
Categories: Nebraska, Crops, Corn, Soybeans, Wheat