Projections for 2026 show that it could be another year of lower farm income. According to data from the U.S. Department of Agriculture, net farm income in 2026, adjusted for inflation, is projected to decrease by 2.6 percent, or $4.1 billion, compared to 2025. Gary Schnitkey, ag economist and professor at the University of Illinois, says one contributing factor is lower commodity prices.
“Illinois agriculture, and corn and soybean farmers in particular, had some very good income years in 2021, 2022, and 2023, but that has been lower since then. So we’ve now had a couple of years with reduced incomes,” says Schnitkey. “What has generally caused that is lower commodity prices. We’ve seen corn and soybean prices come down from their highs in 2022, and while those prices have fallen, costs have not. So that’s put a price–cost squeeze on farmers and lowered incomes.”
Schnitkey adds that farmers are adjusting to tighter margins is by reducing machinery and building purchases.
