US soybean growers are closing out the 2025 harvest facing another year of steep financial pressure, with the American Soybean Association (ASA) warning that negative margins are likely to continue into 2026.
In a new economic analysis released Wednesday, ASA economists Scott Gerlt and Jacquie Holland detail the mounting challenges that have pushed producers into their third consecutive year of market losses — and potentially the longest downturn in more than two decades.
When harvest began in September, November soybean futures were 25% to 30% lower than at the same point in 2022, significantly reducing farmers’ revenue and hampering their ability to cover 2025 production expenses. At the same time, the cost of nearly every major input — land, machinery, seeds, pesticides, and fertilizers — has climbed sharply. USDA estimates total US farm production expenses will rise to $467.4 billion in 2025, up $12 billion from last year.
According to USDA’s Economic Research Service, land and machinery each account for 28% of per-acre soybean production costs, while seeds, pesticides, and fertilizers make up another 26%. Together, these inputs represent 83% of all annual expenses for a typical soybean operation. With costs rising faster than crop prices, the ASA projects an average market loss of $89 per planted acre for 2025.
Meanwhile, the Trump Administration’s tariffs have dramatically raised costs on imported agricultural inputs. The average tariff rate on such products has surged to 9.4%, compared to less than 1% before the measures were enacted. Tariffs on tractors jumped from zero to 16%, adding $80,000 in duties to a $500,000 imported machine. Fertilizer import volumes contracted, pushing domestic phosphate prices higher.
A recent shift in policy may offer some relief. Executive Order 14257, issued on Nov. 14, eliminated tariffs on key fertilizers — including DAP, MAP, and potash — which could ease certain input costs heading into the 2026 season. Still, USDA expects overall expenses to remain high next year, meaning that without a meaningful increase in soybean prices, growers are on track for a fourth year of losses. The last time soybean producers endured a similar stretch was from 1998 to 2002.
See the full analysis here:
https://soygrowers.com/news-releases/the-rising-cost-squeeze-soybean-farmers-face-a-third-year-of-losses/
