AMES, Iowa – Despite lower corn and soybean prices, farmers can still reduce input costs for the remainder of 2024 – and even into 2025, according to industry experts.

“As far as costs for this year’s crops, most of those are already locked in,” said Chad Hart, Iowa State University professor of agricultural economics. “So, farmers will need to look for cost savings as they prepare for the 2025 growing season. And now is a good time to think about input cost choices and the potential for cost savings as farmers will be making some of those decisions quickly after harvest – mainly thinking about seed and fertilizer choices.

“Locking in inputs in the fall doesn’t always save money, although farmers can often receive discounts for early purchases,” he said. “Producers will need to think about which way individual input costs are moving, looking to purchase early if input prices are rising, but delaying purchases if input prices are declining.”

For example, he said, “Hypothetically, producers may want to purchase fertilizer early as fertilizer costs are rising, but delay fuel purchases as diesel prices are declining. They should also be evaluating the return on investment for the various inputs.”

Mark Licht, Iowa State associate professor of agricultural economics and Extension cropping systems specialist, said, “At this point in the growing season, nearly all the crop inputs have been made. I say nearly because drying costs can be influenced by harvest timing. A farmer can wait for the crop to dry down in the field as a way to reduce expense of bin drying, or paying for drying at point of sale. Otherwise, there really is not much more they can squeeze out.

“Many farmers do lock input prices in during the fall by pre-paying a portion or all of the cost, as well as making a purchase decision,” he added. “This is an effective way, especially for inputs you know you will be purchasing.”

He said another aspect of saving some input costs is spending money on soil sampling to know soil P (phosphorous) and K (potassium) fertility levels.

“This allows for variable rate applications that put P and K fertilizer where it is needed, and avoiding applications where there is already enough,” he said. “This stretches the fertilizer dollar a bit further, compared to blanket applications.”

Bernt Nelson, American Farm Bureau Federation economist, said, “There are almost always opportunities to save money on inputs by thinking ahead of time. While it’s unlikely that input costs will decrease in a substantial way, many agricultural product companies offer pre-buying opportunities with discounts. Ag sales companies must compete with each other, and farmers can use this to their advantage.

“If one company is offering a product at a lower cost, have the conversation with management,” he added. “Often, they will price match. There may also be chances this fall to get some fertilizer bought. If fertilizer prices drop in the fall, strip-till applications can save money, compared to paying for spring applications. Taking these actions now can add up, and help save money over time, and get farmers closer to that break-even cost.”

However, he said, “Costs are still a major concern for farmers across the country because, while prices for commodities like corn and soybeans have come down, costs for most inputs have not.

“Farmers have been through this situation before, and they have shown resilience,” he said. “One of the first things farmers can do is to be sure they aren’t investing in unproductive assets. This is not the year to be spending money trying new, untested products. It’s important to have a marketing plan, and know how much money can be spent on a crop to help push yields.”

Andrew P. Griffith, University of Tennessee professor of agricultural and resource economics, said, “At this point in the game, there is not much that can be done to reduce costs. From the cost standpoint, the primary costs left include harvest, hauling, and storage. The focus should probably be on marketing moving forward. Marketing is where a few cents can probably be added on each bushel harvested.”

He said, “I am sure there will be some folks buying this fall and winter for next year’s crop. The key will be keeping one’s eyes open for any opportunities. It is always difficult to know when to purchase.

“Some purchase before year’s end to reduce the tax burden, but there may not be as much need for that this year,” he added. “The big one is always fertilizer because it is a commodity like corn and soybeans, and fluctuates regularly.”

Jacquie Holland, American Soybean Association economist, said, “Markets are expecting fewer corn acres to be planted in 2025, so the reduced demand could take some pressure off input costs by next spring. Soybeans offer lower-cost alternatives to corn, so that could be another option to consider if nitrogen costs remain high and field rotations allow for soybeans to be planted in 2025.”