New Soybean Cost of Production Tool Helps Farmers Plan 2026 Budgets

By Andi Anderson

Farm profitability continues to challenge soybean producers, especially during periods of rising input costs and flat or declining grain prices.

To help farmers better understand their expenses and expected returns, Michigan State University Extension has released the 2026 Projected Cost of Production for Soybeans tool.

This planning tool is designed to help farmers evaluate their cost of production and identify which inputs and practices are profitable.

Knowing production costs allows farmers to make informed decisions during tight margin years and manage financial risk more effectively. The tool serves as a starting point for farm level discussions rather than a one size fits all solution.

The tool is available as a downloadable Excel file and includes three budgeting versions. The Base Projection version estimates costs for farms aiming to minimize expenses while maintaining yields. It assumes a yield goal of 50 bushels per acre and fertility plans based on nutrient removal rates.

The Build Up version uses the same base model but adds fertilizer inputs when soil test results suggest the need to increase soil fertility levels. The Push Production version is designed for farms targeting maximum yield potential, using a 75 bushel per acre yield goal with higher input levels.

Income estimates in the tool are based on Michigan grain price projections and soybean yield data from the U.S. Department of Agriculture. Expense estimates reflect production cost reports from USDA sources, regional price data from Michigan retailers, benchmark averages from the FINBIN database, and current market trends.

Fertilizer and chemical input examples are based on guidance from Michigan State University resources.

The tool also includes break-even calculators showing the price and yield needed to cover production costs. At the time of release, the Base Projection estimates a break-even price of $10.90 per bushel, while the Push Production version estimates $8.98 per bushel. Actual break-even values will vary by farm depending on management practices, input timing, and sale prices.

All versions of the tool are editable, allowing farmers to customize figures to reflect their own operations. The 2026 Projected Cost of Production for Soybeans tool is available through the MSU Extension Farm Management website and will also be linked on the Michigan Soybean Committee website.

Photo Credit: michigan-state-university-msu-extension