As producers look ahead to the rest of the year, the agricultural economy across Michigan and Wisconsin is being shaped by contrasting market forces. Continued pressure on grain prices, relative strength in dairy and livestock, and ongoing volatility underscore the importance of working with a trusted financial partner. In times of uncertainty and opportunity alike, GreenStone remains committed to providing guidance, resources, and financial solutions that help producers navigate changing market conditions.
A Mixed Economic Landscape
Entering 2026, some sectors of the agricultural economy are experiencing ongoing stress, while others are benefiting from favorable pricing and improved margins. These conditions are familiar to producers following several years of volatility.Success is rarely about timing the market perfectly. Instead, it depends on planning, perspective, and partnership. Maintaining a strong relationship with a lender that understands agriculture helps producers make informed decisions that support their short-term and long-term goals.
Grain Markets Continue to Face Headwinds
Row crop producers entered 2026 facing continued margin pressure. Corn, soybean and wheat prices remain subdued, driven by global supply levels and limited export demand. These conditions have tightened cash flow and increased financial stress for many grain operations.This is where proactive planning and collaboration with financial partners matter most. Reviewing cost structures, operating lines and risk management strategies early can help producers remain resilient—even when commodity prices are under pressure.
Michigan and Wisconsin: Similar Pressure, Different Stories
While the broader agricultural market pressures are similar, Michigan and Wisconsin experience them differently.Michigan’s agricultural diversity continues to be a stabilizing force. The Great Lakes State is the country’s second most agriculturally diverse state and produces more than 300 commodities, according to the Michigan Department of Agriculture & Rural Development.
This diversity spreads risk across multiple sectors. When one or more commodities struggle, others perform better and help ensure the stability of the state’s agricultural industry.
Wisconsin’s agricultural economy is more heavily concentrated in dairy. That concentration can increase exposure during downturns, but it also creates opportunity when dairy markets are strong. In both states, producers benefit from working with a lender that understands regional nuances and customizes solutions accordingly.
Dairy Outlook: Strength Supported by Strategic Planning
Dairy producers headed into 2026 with comparatively strong footing. Solid milk and beef prices, combined with lower feed costs, have supported positive margins over the past two years. As prices begin to trend downward from recent highs, the industry is ready.“The (dairy) industry is well prepared with strong balance sheets and working capital positions to absorb the downturn in dairy prices currently visible in the futures market,” said Ben Spitzley, senior vice president of agribusiness lending at GreenStone. “Those who have taken DRP (Dairy Revenue Protection) positions will be further insulated from the downturn. We expect to see increased cow slaughter rates with more dairy cows shifted to the beef market to recalibrate the largest dairy herd in over 30 years.”
The recent strength of the dairy and beef industries has created opportunities for producers to reinvest in their operations and plan strategically. As producers look to maintain gains made during recent years in 2026, GreenStone remains a partner that understands their industry and operation and stands to support them with specialized agricultural financing and tax and accounting services.
Input Costs, Equipment and Long-Term Decision-Making
After the extreme inflation of the post-pandemic years, equipment and input costs have started to stabilize. While new equipment purchases remain out of reach for many operations, opportunities are emerging in used equipment. Falling prices for late model used equipment stand to provide an opportunity for many operations to add efficiency and productivity while avoiding the inflated costs of new equipment.Careful evaluation is essential for healthy investment and growth. GreenStone works with producers to assess capital purchases in the context of cash flow, long-term profitability, and overall financial health—helping to ensure decisions made today support operations tomorrow.
The Importance of Early Planning
For many operations, including many grain producers, the cumulative effect of multiple tight-margin years is becoming evident. Financial stress often builds gradually. It is crucial to begin planning and preparing for challenges early to avoid them becoming insurmountable.Engaging with a trusted financial partner months before the next production cycle allows producers to explore options such as refinancing, restructuring or adjusting operating strategies—before pressure mounts. Early conversations create flexibility and open the door to more effective solutions.
Preparing for Today and Tomorrow
Increasingly, producers and lenders are planning for more than one crop year at a time. While year-end numbers matter, balance sheets often reveal trends well in advance.By looking ahead together, producers and financial partners can anticipate challenges, manage working capital more effectively, and avoid reactive decisions. This proactive, data-driven approach can provide producers with more confidence when navigating uncertain markets.
Recognizing Your Needs as a Producer
In today’s environment, producers generally fall into three broad categories:1. Operations that are currently financially sound, with favorable market conditions.
2. Those that are facing some adverse conditions and need modest adjustments or support.
3. A smaller group facing significant financial stress, due to longer term adverse conditions.
No matter where an operation falls, having a knowledgeable financial partner that can provide perspective, tools, and tailored solutions is crucial. GreenStone has more than a century of experience supporting its cooperative members through every cycle of the agricultural economy.
Risk Management and Crop Insurance as Strategic Tools
Market volatility makes risk management essential. Crop insurance and related tools play a key role in protecting revenue and stabilizing cash flow. Recent legislation and policy changes look to expand access and increase the value of crop insurance for many farmers for the 2026 crop year.GreenStone’s unique tools and customized approach to crop insurance helps producers evaluate coverage options, ask the right questions, and align policies with real-world risk. The goal is not just protection, but confidence—knowing your operation is prepared for whatever the season brings.
Key Takeaways for 2026
As producers prepare for 2026, a disciplined and proactive approach will be essential. Keeping costs low and under control remains a top priority, as tighter margins make it more important than ever to closely review operating expenses and identify opportunities for efficiency.
Planning financing well ahead of the production cycle can help reduce uncertainty, strengthen cash flow, and provide flexibility as market conditions evolve. Strategic use of risk management tools—such as crop insurance and thoughtful marketing strategies—can also help protect against volatility.
Agriculture is often defined by volatility and change, but strong partnerships can provide consistency and confidence. Whether markets are favorable or challenging, GreenStone remains dedicated to helping Michigan and Wisconsin producers succeed.
This article was originally published in Michigan Farm News.
