Field Crop Margin Outlook

Most field crop margins continue the downward trend in 2015. As a result of the continuing downward margin trend, we expect most farm input markets (i.e. fertilisers, seeds, crop protection chemicals and agricultural machinery) around the world remain under pressure in 2015.

While 2014 already saw farmer margins declining to levels not seen since the commodity boom period of 2011 to 2013, we expect further decline in 2015. In some regions, especially the US Midwest, farmer margins are declining to historically low levels. In other regions, the decline is less pronounced due to compensating factors such as a weakening local currency (Brazil) or a crop plan that includes wheat—for which prices have fallen less and yields are expected to improve—(US Great Plains, Australia, France). In the Netherlands, field crop farmers will see a second year of very low margins due to historically low potato prices.

Most field crop margins continue the downward trend in 2015

For more information per region take a look at the Rabobank Field Crop Margin Outlook. It consists of an overview of local prices, yields, incomes, costs, and margins of an average farm taking into account the regional crop plan.

Where to go from here