Soybean Basis Recovers from Sharp Decreases in June

July 17, 2025

At the time of our last basis update in the second week of June, the regional soybean basis was highly volatile. This volatility was driven by sharp decreases in basis at soybean processors in Ohio, Illinois, and Indiana. As June continued, the sharp decrease in soybean basis continued and spread across the entire Eastern Corn Belt. However, as we have progressed through July, much of the basis decrease has been recovered.

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Impact of Leverage on Rates of Return

July 10, 2025

Increasing financial leverage will increase expected returns as long the marginal returns from the use of loans exceeds the cost of borrowing. In favorable economic times, higher leverage can improve financial performance and stimulate farm growth. However, in unfavorable economic times, leverage can cause business performance to deteriorate rapidly. Thus, higher leverage may increase expected returns and financial risk.

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Farmer Sentiment Weakens On Cloudy Trade Outlook

July 1, 2025

Farmer sentiment weakened in June as the Purdue University/CME Group Ag Economy Barometer  fell to 146, down from 158 a month earlier. Purdue ag economists James Mintert and Michael Langemeier share their insight into the results of the June 2025 survey, conducted from June 9-13.

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Corn Basis Continues to Improve as Soybean Basis Varies

June 13, 2025

As July futures near expiration, corn basis across the Eastern Corn Belt continues to strengthen. In Central Ohio, the basis has improved by $0.12/bu over the past three weeks to $0.26/bu, reaching a ten-year high for the second week of June.

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Prospects for Swine Feed Costs in the Second Half of 2025

June 13, 2025

This article discussed recent trends in feed costs for farrow-to-finish and swine finishing enterprises, and provided projections for the second half of 2025. Average feed costs in 2024 were substantially lower than feed costs in 2022 and 2023. Moreover, a further reduction in feed costs is expected for the upcoming year.

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Decomposition of Statement of Cash Flows

June 5, 2025

Cash flow trends from 2007 to 2024 show how crop farms rely on operating income and borrowed funds to drive growth through asset purchases. As income levels shift, so do investment decisions—offering key insights for managing through expected challenges in 2025.

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Farmer Sentiment Reaches a Four-Year High in May

June 3, 2025

Farmer sentiment reached a four-year high in May. Purdue ag economists James Mintert and Michael Langemeier share their insight into the results of the May 2025 Purdue University/CME Group Ag Economy Barometer survey, conducted from May 12-16, in this episode of the Purdue Commercial AgCast. The barometer rose 10 points to 158, the highest since May 2021, driven by optimism about future and current farm conditions.

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Cost Efficiency Comparisons of U.S. and Canadian Farms

May 27, 2025

The objective of this paper is to measure the cost efficiency of corn and soybean production for six typical farms in North America (three in Canada and three in the United States). All these farms produce both corn and soybeans. Cost efficiency is measured using data envelope analysis. In addition to comparing efficiency indices, cost shares of the most efficient farm is compared to cost shares for the other five farms.

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Net Return Comparisons between Tillage Systems

May 23, 2025

Using the FINBIN database, this article compares the net return per acre between no-till systems and reduced tillage systems for corn and soybeans from 2014 to 2023. It is important to keep in mind that no-till systems typically exhibit lower erosion levels and GHG emissions. There is a tradeoff between net return per acre and environmental concerns that need to be considered when comparing these two production systems.

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