Corn Production Costs Rise Sharply

By Scout Nelson

Fertilizer prices are placing significant financial pressure on growers as they prepare for upcoming production seasons. In Minnesota, estimates show that it will cost an average of $220 to fertilize an acre of corn in 2026.

This represents a 55% increase over the past five years, while corn prices have remained largely unchanged during the same period. Rising input expenses are straining budgets and raising concerns about long-term profitability.

In recent written testimony to Congress, one agricultural leader stated that rising input prices are threatening financial stability for many operations. As noted, “The massive increase in the cost of fertilizer is crushing corn growers in Iowa, and they aren’t alone. Growers across the country are facing an impossible decision: buy fertilizer or stay solvent.”

Much of the concern centers on the limited number of companies controlling key fertilizer markets. Nitrogen, phosphorus, and potassium—essential nutrients for corn and other crops—are sold primarily by a handful of large firms. These companies have reported strong year-over-year revenue increases, even as growers struggle with soaring input costs.

The testimony urged federal agencies to act: “Don’t kick the can down the road… Competition issues can’t be solved with cash. Keep up vigorous antitrust enforcement… Empower DOJ Antitrust Assistant Attorney General Gail Slater and FTC Chair Andrew Ferguson to make our markets competitive.”

Input pressure is especially hard on younger producers who rely on rented land and face higher costs. Operations with substantial debt may also struggle as rising fertilizer expenses cut deeply into margins.

At current projections, when corn is priced at $4 per bushel, it will take 157 bushels just to cover input costs. If corn falls to $3.75, it would require 168 bushels to break even. With overhead added, average returns per acre may fall below zero, especially for rented land.

Tariffs have also played a role. According to testimony, “the CVDs increased the price of diammonium phosphate (DAP)… by 28.6%,” adding billions in added costs between 2021 and 2025. Recent tariff changes may offer some relief, but fertilizer prices remain high.

Many growers are adjusting strategies by reducing rates, delaying replacement nutrients, or waiting for price corrections. However, uncertainty continues as fertilizer markets remain volatile, heading into 2026.

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