Farms.com Home  › News

Dr. Schnitkey on Costs, Prices & Tillage Profitability

By Tara Desmond

The farm financial environment remains one of the toughest in decades, according to University of Illinois ag economist Dr. Gary Schnitkey. In a recent IL Corn TV episode, Dr. Schnitkey joined IL Corn’s Director of Water Quality Research, Dr. Laura Gentry, to discuss why 2025 and 2026 are expected to look much like the financially strained years of 2023 and 2024.

The challenge begins with flat commodity prices. With corn expected to remain near $4 and soybeans around $10 for the foreseeable future, there is currently no clear market shift that would drive prices upward. Unlike previous low-price periods such as 2016–17, today’s farmers face significantly higher production costs driven by COVID-era supply disruptions, inflation, labor shortages, global conflict, and sharp jumps in machinery pricing.

Dr. Schnitkey highlights that tractor and combine prices rose roughly 20 percent between 2021 and 2023—an extraordinary increase compared to the long-term trend. Paired with high seed, fertilizer, and pesticide costs, farmers are working to manage expenses wherever possible. Strategies such as stretching machinery replacement cycles, reducing the total number of tractors, or reevaluating tillage equipment can help but each choice comes with trade-offs in repair costs, efficiency, and labor needs.

That is where Precision Conservation Management (PCM), IL Corn’s flagship conservation and financial analysis program, is providing concrete insights. After ten years of data, PCM is showing that no-till and strip-till corn acres are appearing in the top 25% of most profitable fields more often than ever before. Even without incentive payments, these systems reduce passes, lower fuel and labor costs, and help farmers remain competitive in low-margin years. With incentive payments of $5–$25 per acre available for reduced tillage and cover crops, the economic case becomes even stronger.

Click here to see more...

Trending Video

Can Gene Editing Give Seeds a Stronger Start?

Video: Can Gene Editing Give Seeds a Stronger Start?



Reagan Reed has a way of describing his research that might make a plant breeder pause.

“I’m the sort of person who likes to break things to understand them,” he says.

What he breaks are genes involved in seed germination. Reed, a Ph.D. candidate at the University of California, Davis, is investigating whether changing those genes can help seeds establish healthy plants under a wider range of conditions.

Reed recently attended the National Association for Plant Breeding meeting in College Station, Texas, as an NAPB Borlaug Scholar. His work speaks to a question that matters well beyond a research lab: what does it take for a seed to get a crop off to a strong start?

A seed that germinates quickly, alongside the others planted with it, spends less time vulnerable to stresses before seedlings become established.

“If you’re able to bridge that gap between germination to stand establishment, then that’s going to give you the highest probability of having a solid yield that year,” Reed says. “There’s a bunch that can go wrong after that, but it maximises your yield from the start, at least.”

Reed works in Dr. Imtiyaz Khanday’s lab at UC Davis, where his research focuses on seed quality in tomatoes and potatoes. He brings an unusual academic background to the work: at Skidmore College, he studied both biology and Latin.

Reed believes that combination prepared him for research. Translating an ancient text means studying each word, weighing its possible meanings and using context to reach the best interpretation. There is rarely a way to know with complete certainty what an author intended. Science, he says, requires a similar willingness to work through uncertainty.

“Attention to detail and comfortability working with uncertainty,” is how he sums up what Latin taught him.

In the lab, uncertainty can produce a surprise. Reed describes changing one gene and seeing little effect. Changing a second gene also appears to do little. Put both changes in the same genetic background, though, and the result can be substantial.

“I break this gene, nothing really happens. I break this other gene, nothing really happens. I combine them into the same genetic background, and now there’s a massive effect,” he says.

Those interactions matter as researchers gain the ability to edit multiple genes at once. They also complicate any simple account of how a trait works: improving a seed may depend on understanding what several genes do together.

For Reed, the question is whether that knowledge could help seeds germinate reliably when conditions are difficult. Some of the genes he studies prevent germination under certain conditions. That response may serve a plant well in one setting while limiting its usefulness in agriculture. He wants to learn what happens when those genes are changed, and whether the result improves establishment.

Yet a discovery that works in a lab still has a long way to travel before it reaches a field. Reed argues that agricultural biotechnology faces an economic challenge as well as a scientific one. New tools can create value for farmers, he says, but developing them requires a way to support the work in an industry where margins can be thin.

His fellowship with Flagship Pioneering gave him a view across AI, agriculture-related work and human health research. It also reinforced the importance of bringing people with different expertise into the same conversation—a benefit of gatherings such as the NAPB meeting.

“You need to have a team of people with different backgrounds who are willing to work together and approach the same problem in different perspectives and different ways,” he says.

That thinking connects the different parts of Reed’s path. Latin taught him to examine details without expecting a perfect answer. Gene editing lets him test what individual genes do—and what happens when their effects combine. Working with people beyond his own field helps him ask what those findings could become.

He came to agriculture because of its reach: the possibility that work by a small group of researchers could eventually make a difference on a much larger scale. His immediate focus is smaller and more precise. He wants to understand what helps a seed get through its first days and become a healthy plant.