Grain sales, CCC loans, prepaid inputs, and planning for the year ahead.
As harvest wraps up, it's time to take a look at where your farm stands financially. Before closing the books on 2026, there are a few things worth considering that could impact your tax liability, cash flow, and plans for next year's crop.
Take a Look at Your Grain
How much grain have you sold, how much is still in the bin, and how many bushels are sitting on delayed price (DP)?
Know your DP fees, pricing deadlines, and market exposure. Remember, DP grain still carries price risk, and its tax treatment can differ depending on your agreement
Grain quality management is also critical. Weather patterns seem to get more unusual every year, and we're already hearing about some storage concerns with above-normal temperatures.
Keep an eye on grain conditions, moisture, and temperature.
Protecting grain quality is just as important as protecting its price.
Consider CCC Loans
If you're holding grain and looking for a futures rally before selling, a CCC Marketing Assistance Loan may be worth exploring. It can provide cash flow without requiring an immediate grain sale.
Understand your county loan rates, interest, repayment requirements, and tax implications. If you've previously elected to report CCC loan proceeds as income, that election can affect future loans as well.
Talk with your tax professional before making a decision.
Does Prepaying Inputs Make Sense?
Prepaying seed, fertilizer, and chemicals may help secure pricing and potentially provide a current-year tax deduction.
Don't spend money just to lower your tax bill; be strategic. Make sure the purchases fit your 2027 needs and that the discounts justify the cost of tying up cash or paying higher interest.
If you can make needed purchases, take advantage of meaningful discounts, and manage your taxable income in the process, it could be a win-win.
Start Your 2027 Crop Budget
Get a head start on next year's numbers. Estimate input costs, land expenses, interest, and expected yields.
Calculate your corn and soybean breakevens so you know what it takes to cover your costs and where your marketing targets should be.
Get a head start on next year's numbers. Estimate input costs, land expenses, interest, and expected yields.
Calculate your corn and soybean breakevens so you know what it takes to cover your costs and where your marketing targets should be.
The Bottom Line
Year-end planning isn't just about reducing taxes. It's about making smart decisions that keep your operation financially healthy.
Review your position reports, talk with your accountant and lender, and make sure you're heading into 2027 with a plan.
A little preparation now can make a big difference.
Kyle Adams
Crop Insurance Expert | Marketing Advisor, Eastern Corn Belt
With more than a decade of experience as a crop insurance agent, Kyle integrates our marketing strategies with crop insurance products to maximize both sets of tools, creating a well-rounded risk management program for our clients.
Connect with Kyle