It was great to see so many of you at the 63rd edition of Ohio State University’s Farm Science Review held in London, Ohio from Sept. 16 to Sept. 18. Each year, over 110,000 people attend to see the latest in agricultural equipment and technology, visit with commercial exhibitors and learn management strategies to improve their farms.
Our OSU Farm Office team was on hand to visit with farm managers and to share our thoughts on the “Ask the Expert” stage. Today, I would like to share a few observations from our visits and presentations.
The farm economy
The hot and dry week could not mask the concerns shared by both farmers and the featured speakers with regards to trade, farm policy and the 2026 market outlook for many of our agricultural commodities. Many farmers still reference an age-old rhyme to predict the weather based on the color of the sky. The phrase “Red at night, sailors’ delight. Red in the morning, sailors take warning” can be traced back to wisdom found in the book of Matthew and may serve as a good metaphor for the current state of our agricultural sector.
Earlier this month, the U.S. Department of Agriculture Economic Research Service released its projected 2025 Farm Sector Income report. This report suggests a “red sky at night” scenario as it projects farm cash receipts to increase by 4.7% for 2025. This increase is carried by an 11.2% increase for livestock receipts while crop receipts are projected to decrease by 2.5%. Overall, 2025 net farm income is projected to increase by a whopping 40.7% due to the sizable supplemental assistance provided through the American Relief Act of 2025.
However, 2026 looks to be a “red sky in the morning” year as projections are signaling a very rough economic year ahead. Producers are encouraged to update their balance sheet and do a hard dive into financial statements.
We also recommend that you check out the Ohio Farm Business Analysis and Benchmarking program which can help examine your farm’s financial health. Check out details on this program at farmprofitability.osu.edu.
2026 crop input outlook
Each year, one of the most popular sessions is Barry Ward’s projections for corn, soybean and wheat. His forecast is also very bearish for 2026. Record yields are projected across the Midwest for this year’s crop. Even though export and ethanol usage has been strong, the higher crop inventories are projected to suppress prices.
Bottom line, the projections for 2026 have a lot of producers concerned. So, it will be very important to work through your 2026 budgets with great attention to detail. If you were not able to pick up a copy of the new budgets at the Review, you can access them at: farmoffice.osu.edu/farm-management/enterprise-budgets.
One Big Beautiful Bill Act
Our team also had a lot of discussions with farmers on the provisions of this legislation and its impact on taxes. One bright spot is the federal estate tax exemption will be raised to $15 million dollars per person and indexed for inflation starting in 2026. A second bright spot is the increased dollar limits for farmers as they depreciate machinery and equipment. Section 179 expensing has been increased to $2.5 million and bonus depreciation has been permanently increased to 100% after January 19, 2025.
Planning for the future of your farm. Our team also had a lot of estate and transition planning questions at FSR. We were excited to announce last week that our farm office team has a new self-paced online course to help families plan for the transition of their farm operation to the next generation.
This course allows families to learn how to transfer the farm’s ownership, management and assets. Full access to the course videos and materials is $149 per person and more information about the course can be found at go.osu.edu/MyFarmsFuture.
For those who desire to attend an in-person workshop, we have regional workshops scheduled in Clinton, Lorain, Logan, Muskingum and Washington counties during December through March. You can learn more about these workshops at go.osu.edu/farmsuccession.
Looking forward
Given the significant stress in the farm economy, it’s essential to stay connected with your financial and farm management professionals.
The OSU Extension Farm Office Team is here to support Ohio’s producers by providing up-to-date information on legal, tax and farm management issues. We host a monthly Farm Office Live webinar to provide insights into these topics.
Upcoming webinars will be held on Oct. 17, Nov. 14 and Dec. 12 from 10-11:30 a.m. More details can be found at farmoffice.osu.edu/farmofficelive. Have a good and safe harvest season.
Y’all really should stop complaining.
You did this, and if given another chance you’d do it again.