2027 Cost of Production projection tools now available

Jonathan LaPorte<laportej@msu.edu>, Eric Anderson<eander32@msu.edu> and Dennis Pennington<pennin34@msu.edu>, Michigan State University Extension - September 25, 2026

The updated cost of production Excel-based tool for corn, soybeans, and wheat is now available from MSU Extension.

Farm profitability is a bottom-line priority for farmers. It is a challenge in any year, but particularly in times when input costs are on the rise. When margins are tight, farmers need to know their cost of production to determine what inputs and practices are profitable and which ones may need to be put on hold. The new MSU Extension 2027 Projected Cost of Production tools for corn, soybeans, and wheat are intended to serve as a starting point for discussions on both expected income and expenses for individual farms.

For each crop tool, there are three versions of projected cost of production in a single downloadable Excel file:

The Base Projection version provides an estimate for farms seeking to minimize costs without sacrificing yield. Base projections have aligning chemical plans and assume fertility plans based on rate of nutrient removal from the Tri-State Fertilizer Recommendations bulletin.
The Build-Up version starts out using the same information as the base projections. The fertility plans are updated to include recommended additional fertilizer inputs to build up soil nutrient levels based on example soil test results.
The Push Production version provides an estimate for farms seeking to push maximum yield output. Push production projections have aligned chemical plans and assume fertility plans based on nutrient removal rates from the Tri-State Fertilizer Recommendations bulletin.

Income values are derived from price projections from composite grain buyers across Michigan and yield data for Michigan from USDA’s National Agricultural Statistics Service (NASS). Expenses are based on the latest Illinois production costs report from USDA’s Agricultural Marketing Service (AMS), composite prices from Michigan retailers, five-year average benchmark data from the FINBIN database (finbin.umn.edu), and current price trends.

The example expenses are based on recommendations from various resources at Michigan State University. Resources include:

MSU Weed Control Guide
Tri-State Fertility Recommendations and supplemental data from msu.edu
Crop Protection Network

Note: products used in the examples are for illustrative purposes only and not considered an endorsement by Michigan State University.

Individual farm values and break-even values are also included in the tools. Break-evens will differ based on production practices, timing of purchases, and/or value of crops at time of sale. All versions of the tools can be edited by individual farms to create budgets for their own operations.

To illustrate the final reports farms can create, the following examples are available for all crops:

The 2027 Projected Cost of Production tools can be found in the Farm Business Cost of Production section on the MSU Extension Farm Management website. The Michigan Wheat Program will also be co-hosting the 2027 Projected Cost of Production tool for wheat on their website: https://miwheat.org/

This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).

MSU Extension Farm Management