Commodities February 19, 2026

USDA Forecasts Shift Toward Soybeans, Pullback in Corn Acreage for 2026

Agency projects higher soybean seedings and reduced corn plantings amid weak prices, large supplies and rising input costs

By Priya Menon
USDA Forecasts Shift Toward Soybeans, Pullback in Corn Acreage for 2026

The U.S. Department of Agriculture projects farmers will plant more soybeans and fewer acres of corn in 2026 compared with 2025, while both crops are expected to yield the second-largest harvests on record. Corn acreage is forecast at 94 million acres, down from 98.8 million acres in 2025, while soybean seedings are set to rise to 85 million acres from 81.2 million. The outlook reflects a complex balance of ample supplies, depressed prices, export competition and higher input costs that are shaping planting decisions.

Key Points

  • USDA projects 2026 corn plantings at 94 million acres, down from 98.8 million in 2025, and soybean seedings at 85 million acres, up from 81.2 million.
  • Both crops are forecast to produce their second-largest harvests on record, assuming normal weather - 15.755 billion bushels for corn and 4.450 billion bushels for soybeans.
  • Projected shifts in acreage and stocks affect exporters, ethanol and renewable fuel producers, and livestock feed processors - with corn exports forecast lower and soybean exports and crushing demand projected higher.

Overview

The U.S. Department of Agriculture released projections indicating a tilt toward soybean production in 2026 and a pullback in corn acreage. Despite the shift in planting intentions, the USDA expects both crops to produce their second-largest harvests on record, assuming normal weather conditions.

Acreage projections

The USDA forecast U.S. corn plantings at 94 million acres for 2026, down from an 89-year high of 98.8 million acres in 2025. Soybean seedings were projected to increase to 85 million acres, up from 81.2 million acres last year. These acreage changes signal producers responding to market and cost signals while still operating within the broader constraints of crop rotation and field-level decisions.

Economic pressures on growers

Producers face a decision environment shaped by a global supply surplus, soft crop prices and higher input costs for items such as seed and fertilizer. The USDA projects U.S. farm income will decline by 0.7 percent even as government payments remain near record levels and account for nearly 29 percent of producers' revenue. Many Midwest operators alternate corn and soybeans by field to sustain soil health, but some acres may depart from traditional rotation patterns if profit opportunities warrant a change.

Market context for corn

The USDA's corn acreage forecast came in below the average estimate of 94.9 million acres in an analyst poll. Analysts note that low corn prices and ample supplies following a record U.S. crop in 2025 are likely to dampen incentives for acreage expansion. Nevertheless, demand from exporters and ethanol biofuel producers is expected to restrain a more pronounced reduction in plantings.

Market context for soybeans

Soybean seedings exceeded the average estimate of 84.9 million acres in the same analyst poll. Acreage increases are projected despite ongoing trade tensions with China and strong export competition from Brazil, where farmers are harvesting a likely record crop. Domestic demand for soybean oil from renewable fuel makers has provided price support, creating a floor for soybean values and encouraging higher seedings.

Projected production and stocks

Assuming ordinary weather, the USDA projected the 2026 U.S. corn harvest at 15.755 billion bushels and the soybean harvest at 4.450 billion bushels. After accounting for demand from exporters, livestock feeders and biofuel producers, ending U.S. corn stocks for the 2026/27 marketing year - on August 31, 2027 - were forecast at 1.837 billion bushels. That figure would be down from a seven-year high of 2.127 billion bushels a year earlier. Soybean stocks at the close of the 2026/27 season were projected to rise slightly to 355 million bushels from 350 million bushels at the end of 2025/26.

Trade and demand projections

The USDA expected 2026/27 corn exports to total 3.1 billion bushels, a decrease of 200 million bushels from 2025/26, citing rising competition from South American suppliers. In contrast, soybean exports were forecast to increase by 125 million bushels to a two-year high of 1.7 billion bushels. Crushing demand - the volume processed into soymeal for livestock feed and soyoil for food and biofuel - was projected at a record 2.655 billion bushels.

Wheat outlook

Wheat ending stocks for the 2026/27 marketing year were forecast at 933 million bushels, essentially unchanged from a year earlier. The USDA attributed that near-stability to lower U.S. exports offsetting a decline in domestic production, as bumper crops in other suppliers such as Argentina and Australia weigh on global trade. U.S. wheat exports for 2026/27 were projected at 850 million bushels, down 50 million from the current marketing year.


This analysis reports the USDA's projections and the market factors the agency cited in its outlook.

Risks

  • Weather risk - the USDA projections assume normal weather; deviations could alter production and ending stocks, affecting commodity markets and related supply chains.
  • Market and trade risk - weak prices, a global supply glut and export competition from South American suppliers introduce uncertainty for U.S. export volumes and farmer planting decisions, which can impact grain traders and farm cash flows.
  • Input cost pressure - rising costs for seeds and fertilizer could compress farm margins and influence acreage choices, with potential consequences for farm income and agricultural machinery and input suppliers.

More from Commodities

Cuba Turns to Solar as Fuel Supplies and Power Grid Strain Under U.S. Measures Feb 20, 2026 Citigroup Maps Out Oil Price Paths as U.S.-Iran Tensions Mount Feb 20, 2026 Oil Rises, Tech and Credit Nervous as Geopolitics and AI Spending Reshape Markets Feb 20, 2026 EPA to Roll Back Mercury and Air Toxics Limits on Coal Plants, Citing Grid Reliability Feb 20, 2026 Raymond James: U.S. Military Action in Iran 'Likely at This Stage' as Tensions Rise Feb 20, 2026