Expert Advised Ohio Farmers to Prioritize Liquidity

Agricultural producers must navigate elevated input costs and tight margins as they prepare for 2027.

Updated on Sept. 30, 2026 in Agriculture

Isometric editorial illustration of a stainless steel soil sampling probe standing in a furrowed field, representing precision agricultural management. — Ohio State University experts are urging agricultural producers to prioritize liquidity and precision input management to navigate persistent economic headwinds through 2027. AI Illustration. Upload story photo >

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Ohio State University Extension business management expert Barry Ward urged farmers to focus on liquidity and strict cost control amid ongoing economic pressures. Despite some price improvements in 2026, high operating expenses remain a challenge for the state's agricultural sector.

Why it matters

Farmers face sustained pressure on profit margins due to elevated costs for fertilizer, fuel, and equipment, which necessitates a more precise approach to field management. This shift is essential for maintaining stability as producers enter a period of projected economic uncertainty.

While corn and soybean prices showed improvement in 2026, farmers continue to grapple with elevated input costs versus historical norms. The sector faces ongoing uncertainty regarding cost structures for machinery and land rent heading into 2027.

The players

Barry Ward

A business management expert with the Ohio State University Extension who specializes in agricultural finance and production efficiency.

Ohio State University Extension

The outreach arm of Ohio State University that provides research-based agricultural expertise and management guidance to producers across the state.

The details

Producers are encouraged to reduce production expenses by leveraging precision soil sampling to identify specific field requirements. By applying precise amounts of phosphorus, potassium, and lime rather than blanket applications, operators can trim input costs. This strategy helps mitigate the impact of persistent inflation in agricultural supply chains.

Corn and soybean prices improved throughout 2026.
The Farm Science Review took place in September 2026.
Producers face economic uncertainty heading into 2027.

Market Landscape

This guidance follows the established pattern of agricultural commodity cycles, where producers must pivot from growth-oriented investments to cost-control strategies during price instability. The focus on precision management mirrors broader trends in the industry to counteract margin compression.

Operators should audit their current input usage and prioritize liquid cash reserves to cushion against 2027 volatility. Precision soil mapping should be evaluated as a primary tool for reducing fertilizer spend in the upcoming planting season.

The takeaway

Maintaining strict liquidity is the primary defense against the structural cost increases currently impacting agricultural operations. Review your specific field-level nutrient data now to identify potential cost-saving opportunities before the next cycle.