Preparing your operation for tough markets and better days ahead

Crop prices have eased back to levels we haven’t seen in several years and many producers are feeling the pinch. In real terms, after adjusting for inflation, corn and soybean prices are hovering near their weakest levels in nearly two decades—even as input costs, machinery prices, and global trade pressures continue to rise.

Add in tighter export markets and ongoing tariff uncertainty, and it’s clear that today’s margins are under strain.

But while the numbers may not look encouraging, this is also a time to regroup, refocus and strengthen parts of your operation that can weather whatever comes next. Here are a few practical ways to prepare your business for uncertain times ahead.

1. Keep solid books—and know what they mean

Good records are always important, but they’re essential when profits are tight. Clear, accurate books allow you to see where your dollars are going and where adjustments might make sense. They also give you confidence when sitting across from your banker.

When you can present a complete, up-to-date picture of your finances, you have far more negotiating power. It shows that you’re in control of your numbers and your operation—something lenders value, especially in an uncertain market.

That means tracking your inventory, expenses, and cash flow closely—and using that data to make informed decisions about purchases, sales and financing.

2. Strengthen your risk management plan

Price volatility is part of agriculture, but in today’s market, having a plan to protect yourself is non-negotiable. Review your crop insurance coverage and make sure it still fits your operation’s size and structure. Evaluate marketing and hedging strategies to reduce exposure to swings in the market.

Right now, many farmers are playing defensive ball against the current market situation—and that’s understandable. But we’re approaching a time when key marketing and storage decisions will need to be made. Bins can be a great tool, but “store and ignore” only works if you’re also protecting the carry and watching your basis. Big crops tend to have long tails, so patience and planning both matter.

If you don’t have access to on-farm storage, compare the cost of commercial storage with a reownership strategy. Selling your physical grain and reowning it later can establish a price floor while still keeping you in the market. Commercial storage provides time, but it comes at a cost and leaves you open to downward market risk.

The key is to find a way to stay in the game. Be flexible, understand your risk, know your tools—and remember, it’s always OK to ask for help when you need it.

Even with strong risk management strategies in place, famers can’t overlook the importance of maximizing available support.

3. Maximize every program available

Government programs aren’t a fix-all, but they can help bridge the gap during lean years. From disaster assistance to cost-share and conservation incentives, these programs can add an extra layer of stability.

Make sure your acres are accurately reported and that your local Farm Service Agency office has your most current information on file. That ensures you’re ready to participate in future programs or payments that may be introduced.

Producers who stay proactive—keeping paperwork current and asking questions—are the first in line when opportunities arise.

4. Stay in close contact with your CPA

Tax strategy is another critical piece of managing through a down cycle. Low prices don’t necessarily mean a low tax bill, especially with high inventories or deferred sales in the mix.

Communicate regularly with your certified public accountant about your current situation and your plans for the coming year. Tax planning shouldn’t be an afterthought—it’s about matching your financial decisions to your long-term goals and cash flow needs.

Simple adjustments—like the timing of equipment purchases, expense payments or income recognition—can make a real difference in your year-end position.

5. Keep an eye out for opportunity

Not every corner of agriculture is struggling. Cattle prices, for example, have remained strong, offering some relief for diversified operations. For others, this might be a time to explore new marketing channels, specialty crops, or value-added ventures that fit your operation’s resources.

The point isn’t to make sweeping changes overnight but to stay open to what’s working—and position your business to pivot when markets shift.

Preparing for what’s next

Farming has always been cyclical, and this downturn is no exception. While no one can predict how long low prices will last, the producers who come out ahead are those who stay proactive: keeping their books current, their protection in place and their options open.

Even in uncertain times, clarity and preparation create their own kind of stability.

Editor’s note: Keaton Dugan, a certified public accountant, advises farmers and agribusiness owners on strategic tax planning, succession strategies, and long-term financial sustainability for Pinion, LLC. Whether the goal is to expand operations, transition ownership, or optimize tax structures, Dugan draws on his experience as a trusted advisor and his background working on his family’s multi-generational farm to deliver practical, tailored solutions. Contact him at [email protected].