How Manitoba farmers can navigate profit challenges in 2025

As Manitoba farmers gear up for the 2025 growing season, economic pressures remain a significant concern. Darren Bond, a Farm Management Specialist with Manitoba Agriculture, recently shared insights and strategies to help producers manage costs, navigate market challenges, and turn a profit despite an ongoing cost-price squeeze.

Bond, who specializes in crop production costs, risk management, and farmland rental, emphasizes that every agronomic decision must also account for economic costs and benefits.

“At the end of the day, farming is a business,” he says. “Making informed decisions based on accurate cost and revenue projections is crucial for success.”

The cost-price squeeze in 2025

Bond notes that while the cost of production has eased slightly over the past two years, it remains historically high. “What’s really impacting farms in 2025 is the significant drop in grain prices,” he explains. “This has created a cost-price squeeze where revenue is not keeping up with expenses.”

Manitoba Agriculture’s annual guidelines for estimating crop production ocsts show that many of the province’s top crops are projected to incur losses when factoring in land and equipment costs.

“We’re looking at losses of around $30 to $50 per acre for most crops,” Bond states. “Farms with higher equity might still see profits, but those carrying significant debt, particularly younger farmers or those who’ve recently expanded, are feeling the pinch.”

In a challenging economic climate, careful planning becomes essential. Bond advises farmers to start by calculating their costs of production. “The best numbers for producers are their own,” he says. “Take your total costs, divide them by your expected yield, and calculate your cost per bushel. This gives you a clear picture of your breakeven point and helps inform your marketing and cropping decisions.”

He likens the process to navigating a ship. “The earlier you make course corrections, the more options you have,” he explains. “Waiting until the last moment often leaves fewer, less desirable choices.”

Managing costs without sacrificing yield

One of the most significant opportunities for farmers lies in optimizing their cost structures. However, Bond cautions against cutting corners that could reduce yields. “If you cut $20 worth of costs but lose $40 in yield, that’s not a trade-off you want,” he says. “The goal is to reduce expenses without compromising production.”

Fertilizer management is one area where producers can make meaningful savings. “Fertilizer is incredibly expensive,” Bond notes. “If we can use it more efficiently, such as by applying it closer to the crop’s needs, we might save $10 or $20 per acre. Small adjustments like this can add up.”

Bond encourages farmers to review all areas of their operation to identify opportunities for efficiency. “Every farm is different, which is why understanding your specific cost structure is so important,” he says. “Whether it’s fertilizer, fuel, or equipment costs, knowing where you stand compared to others can reveal areas for improvement.”

Learning from the past

Cost-price squeezes are not new to agriculture. “Our parents and grandparents faced similar challenges,” Bond points out. “What’s different today are the sheer scale and cost of farming. Equipment and input costs are so much higher, which increases the risks. A small loss per acre can quickly turn into a significant financial setback.”

Despite these challenges, Bond highlights that certain fundamentals of farming remain unchanged. “Too much moisture, too little moisture – these are things farmers have always dealt with,” he says. “Mother Nature hasn’t changed. What’s important is to plan for these variables and stay adaptable.”

Leveraging expert advice

Bond recommends that farmers seek professional advice to enhance their decision-making. “No farmer can be an expert in everything,” he says. “Some might excel at machinery maintenance but need help with financial management, while others might have strong financial skills but need agronomic advice.”

Working with a consultant can provide valuable insights and support. “A good advisor doesn’t just solve problems; they also help farmers build their own skills,” Bond emphasizes. “By learning alongside your advisor, you’ll be better equipped to ask the right questions and make informed decisions in the future.”

Bond also stresses the importance of choosing the right consultant. “Ask for a quote and ensure you understand what you’re getting,” he advises. “The relationship should be collaborative, with a focus on developing the farmer’s own management abilities.”

Adapting for the future

With challenges comes opportunities. Bond encourages farmers to stay informed about market trends and explore alternative cropping strategies. “Consider shifting acres to crops that offer higher profitability with less risk,” he suggests. “What worked last year might not work this year, and being flexible is key.”

Winter is an ideal time for planning and evaluation. “Take this time to review your operations, analyze your costs, and make strategic decisions for the coming season,” Bond advises. “The earlier you start, the better prepared you’ll be to navigate whatever 2025 brings.”

Farming in 2025 requires a balance of tradition and innovation. While economic pressures are undeniable, careful planning, cost management, and professional support can help Manitoba farmers weather the storm.

“Farming is always about managing risks and rewards,” Bond concludes. “With the right strategies in place, producers can not only survive but thrive in challenging times. By staying informed, proactive, and adaptable, Manitoba’s farmers can position themselves for long-term success.”