US 2026 corn crop off to good start as farmers weigh fertilizer costs, diesel prices

US corn farmers say the 2026 crop is off to a generally good start despite a planting season disrupted by cold snaps, rain delays and wind, along with machinery problems and elevated input costs, including fertilizers, nitrogen and fuel.

Fertilizer decisions are one of the key questions for this year's crop. With prices high, many farmers are adjusting application rates—especially cutting back on nutrients where the risk is seen as more manageable in the short term.

Nick Petterson, secretary of the Minnesota Corn Growers Association Board of Directors, and a farmer in Clear Lake, Minnesota, said some farmers made acreage changes before planting, mostly shifting some corn ground to soybeans because of fertilizer and other input costs.

"Farmers changed their minds and put some more soybean acres in," Petterson said to Platts.

He estimated acreage shifts in his area may have reached around 10%. On his own farm, he said only one field, around 5% of the acres, moved from corn to soybeans.

"I hear something similar talking to various people in the market," said a trader source from Kentucky.

Platts assessed Ammonia CFR USGC at $725/mt on June 24, an increase of 74% compared to the same day prior year, $417/mt.

In central Illinois, Mark Bunselmeyer, president of the Illinois Corn Growers Association and a farmer in Maroa, said the planting window was fairly typical, though bouts of helpful and unhelpful rain caused delays and led some acres to be replanted, with wind adding another challenge.

"Excessive wind caused sprayers to be parked," he said.

Bunselmeyer said machinery breakdowns also added stress, but planting was completed successfully. Unlike some farmers who shifted acres in response to high fertilizer costs, he said his farm kept its original crop plan.

"Our fertilizer was purchased and applied last fall," he said.

Bunselmeyer said his farm used variable-rate applications to focus fertilizer where it was most needed and reduce some costs.

Fuel prices have also weighed on this planting season. According to farmers and the National Corn Growers Association, fuel prices rose sharply in the middle of the planting season, when the average farm diesel price reached a record high $5.41 per gallon in May.

"Current diesel prices are nearly double a year ago, while corn prices are slightly lower, worsening the diesel-to-corn exchange rate," NCGA said in a statement.

Corn quality

The latest USDA Crop Progress report showed 68% of the US corn crop rated in good-to-excellent condition for the week ended June 21, unchanged from the previous week. However, the rating remains below the 70% good-to-excellent rating reported during the same week last year. The gap has narrowed from the prior week, when the comparison stood at 68% this year versus 72% a year earlier.

Mindy McMurtry, senior analyst at S&P Global Energy CERA, said current condition ratings should be treated cautiously because it is still early in the season, but the overall signal is positive.

CERA's fertilizer survey also points to limited yield damage from fertilizer adjustments. McMurtry said the firm lowered its corn yield projection by only 0.5 bushel per acre to account for the risk, to 185.5 bu/ac for marketing year 2026-27 (September-August).

According to McMurtry, weather and not fertilizer application "should be the major factor" this season.

She said some parts of the Eastern Corn Belt are too wet, while areas of the Western Corn Belt are beginning to dry out, adding that the broader condition rating points to a good start.

That is also how farmers are viewing the season. Bunselmeyer said his crop looks good after a dry stretch following planting and recent rains, though cooler temperatures may slow growth. He also noted that some areas were hit by wind and hail.

Farmers and S&P Global Energy CERA analysts say the biggest test is still ahead, with July and August weather likely to determine whether early optimism turns into strong yields.

"The key weeks for the crop are still ahead," McMurtry said, referring to July and August.

Petterson said some farmers may have reduced nitrogen modestly, but he does not believe widespread cuts were large enough to meaningfully damage corn quality at this stage. The farmer also said that the cold spell came while much of the crop was already planted, delaying emergence.

"There were some freezes while a lot of the crop was in the ground," he said. "That just kind of delayed the crop."

Even so, he said the crop now appears to be in decent shape.

Platts, assessed on June 24 the outright price for July shipments of yellow corn to New Orleans CIF at $196.05/mt and for August shipments at $199.90/mt, while FOB Gulf for September was assessed at $205.41/mt.