MSU Extension Soybeans

Agricultural economists are projecting tighter profit margins for soybeans in 2025 than those realized in recent years due to lower market prices and high input costs. Because of this, soybean producers will need to manage production costs carefully while seeking opportunities to maximize yields. The following research-based recommendations from Michigan State University Extension will help producers reduce production costs without adversely affecting yields. 

Diets and coupons 

There are two main ways to slash your grocery bill: eat less and find sales or use coupons. Similarly, farmers can increase net revenue in their operations by reducing the amount of inputs used or finding ways to reduce input costs. It is not likely that you are going to open your mail today and find a Meijer-style mailing with “hand-picked just for you” coupons on fertilizers and agricultural chemicals you’ll need next spring. Aside from working with your input dealers to make purchases before the end of the year or bundling savings on products from a given company, there aren’t many ways to reduce these input prices.  

This article will focus on ways to diet—to reduce the total amount of inputs used, when possible, without negatively affecting net profit or causing management problems for yourself down the road. Don’t look for a silver bullet or anything flashy here. The following recommendations are research-based, practical, and will help increase production efficiency in any year—they will just be more impactful in years with tight margins. Don’t look to make large-scale cuts to reduce input costs, but rather look for several areas to save a little here and a little there. 

Select high-yielding and pest resistant varieties 

Variety selection is the first step in improving net revenue and is one of your most important decisions when planting soybeans. Based on data from the Michigan Soybean Performance Reports, choosing varieties carefully can increase your yield potential by 5 to 12 bushels per acre. Using the U.S. Department of Agriculture’s (USDA’s) Economic Research Service (ERS) projected 2024/2025 market-year-average price of $9.97 per bushel, variety selection could add $49.85 to $119.64 per acre in revenue. Variety selection can also reduce yield losses due to white mold, sudden death syndrome (SDS), Phytophthora root and stem rot and soybean cyst nematodes without increasing costs. Work with your seed dealer to strategically match varieties with the known pest pressure and productivity of your fields.  

Reduce or eliminate tillage operations 

Tillage trials conducted across the U.S. have shown that tillage does not significantly affect soybean yield. Iowa State University soybean specialist Mark Licht says soybean yield is not influenced by tillage system, and farmers can save $15 to $25 per acre in switching to no-till. A single tillage pass performed in the spring was compared to an untilled control at eight locations in Michigan from 2019 to 2021. Tillage increased income at only two locations. If your fields are relatively smooth and free from harvest ruts and your planting equipment is equipped to plant through the existing residue, consider planting without additional tillage.  

Tillage operations may be necessary to level harvest ruts prior to planting and may be beneficial when planting very early (last week of April). Although some will consider tillage to alleviate slug problems, Michigan State University Extension field crop entomologist Chris DiFonzo, PhD, says it is perhaps more important to not plant wet and leave an open furrow where slugs can easily access the seed as it’s germinating. 

Plant soybeans early 

Numerous planting date trials show that planting soybeans early maximizes yield potential. Yield losses of 0.3 to 0.6 bushels per acre have been documented for each day that planting is delayed after May 8. At USDA’s ERS value of $9.97 per bushel, that equals a potential loss of $2.99 to $5.98 per acre lost each day. However, it is far better to delay planting than to plant into soil that is too wet. 

Reduce planting rates 

Results from 67 replicated on-farm trials conducted in Michigan from 2015 to 2021 show that low planting rates can produce surprisingly high yields. In fact, the 100,000-seeds-per-acre planting rate was more profitable than the 130,000 and 160,000 planting rates when all 67 sites were combined. Using an average seed cost per bag of $66.62, potential savings of planting 100,000 seeds versus 130,000 or 160,000 seeds would be $14.27 and $28.55 per acre, respectively (Table 1). 

Seed cost per bag is $66.62 based on responses from Michigan soybean seed companies to inquiries on average non-treated soybean seed prices in 2024. Prices assume 140,000 seeds per bag. 

Higher planting rates are recommended when planting in marginal soils and when planting late. Higher rates are also recommended in northern Michigan where early-maturing varieties are planted. Under good planting conditions, planting rates should be 15 to 20% higher than your intended harvest populations. 

Base lime applications on soil test results 

Soybeans will generally perform well at soil pH levels between 6.0 and 7.0. However, the optimal range is between 6.3 and 6.5 as this range maximizes nutrient availability and biological nitrogen fixation, while minimizing soybean cyst nematode population growth. If you have limited funds for fertility this year, spend them first on adjusting pH if a current soil test calls for it. Variable-rate lime applications are highly recommended to achieve more uniform soil pH levels within fields. 

Don’t apply nitrogen fertilizer 

Hundreds of university trials have shown that nitrogen fertilizer applications to soybeans are rarely profitable. This has been confirmed in replicated on-farm trials conducted in Michigan. 

Don’t apply foliar fertilizers 

Foliar fertilizer applications to soybeans are rarely profitable. This has been demonstrated in hundreds of university trials (see “Foliar Fertilizers Rarely Increase Yield in U.S. Soybean” from the Soybean Checkoff), and in the Michigan on-farm foliar fertilizer trials, where only 15 of the 156 replicated trials were profitable. The exception is foliar application of manganese sulfate, which is recommended to correct visible manganese deficiency symptoms. 

Consider eliminating starter fertilizer 

Eleven on-farm 2x2 starter fertilizer trials were conducted in Michigan in 2021–23. In two of the trials, the starter fertilizer increased income by $4.50 per acre. However, when all 11 sites were combined, the starter fertilizers decreased income by $30 per acre. In-furrow fertilizer placement has also not consistently increased soybean yields in Michigan on-farm trials either. In-furrow fertilizers increased yields in only two trials. 

Apply potassium (K) fertilizers as needed to maintain critical soil test levels 

Soybean producers can make important potash application decisions by comparing their K soil test levels to the values listed in Table 2. If your K soil test levels are at least 10 parts per million (ppm) above the critical level, eliminating potash applications should not adversely affect next year’s soybean yields or drop K soil test levels below the critical level. However, if your soil test levels are less than 10 ppm above the critical levels, a maintenance level K application is warranted. The K levels reported in Table 2 are Mehlich III values. If your soil test reports K levels as ammonium acetate values, multiply by 1.14 to convert to Mehlich III. 

Apply seed treatments only when warranted 

Soybean seed treatments including fungicides, insecticides, inoculants and nematicides have produced inconsistent yield benefits in university trials. For example, base seed treatments containing multiple fungicides and an insecticide were profitable in only 10 out of 31 replicated on-farm trials conducted in Michigan from 2017 to 2020. The average yield increase was 1.4 bushels per acre, which was about breakeven. Seed treatments may be warranted when pest problems such as SDS or Phytophthora root rot have been verified or when planting conditions favor pest damage. Examples include: early planting (Pythium and SDS); planting into grass sods (white grubs and wireworms); and when manure or green plant material has been incorporated within two weeks of planting (seed corn maggot). 

Consider eliminating foliar fungicide applications unless field and weather conditions are favorable for white mold 

Prophylactic foliar fungicide applications have produced modest yield increases in Michigan on-farm research trials. Stratego YLD, Priaxor, Miravis Neo and Delaro Complete have been evaluated in on-farm trials in Michigan from 2012 to 2023 (Table 3). 

 However, foliar fungicides rated as providing good white mold control (Aproach, Endura, Lektivar, Omega and Propulse) can be important tools for managing white mold. Use a combination of tactics when planting soybeans into fields having a history of white mold. These include resistant varieties, reduced planting rates, wide rows, irrigation water management, careful tillage decisions, foliar fungicides and using the Sporecaster App to assist with fungicide application decisions. You may also consider spraying only those areas of the field at highest risk, e.g., low, wet areas, areas where pivots overlap, etc. 

Select and apply herbicides to maximize weed control, minimize crop damage and reduce herbicide resistance 

Christy Sprague, a Michigan State University weed scientist, evaluates commercially available weed control programs each year. The most profitable weed control programs year-in and year-out provide the highest level of weed control and minimize crop injury. The cost of the weed control programs is also considered, but it does not affect overall profitability as much as the level of weed control and crop injury. 

Simplify cover crop management 

Cover crops may seem like a luxury expense when margins are tight, but most farmers who have seen the benefits and made progress with soil health from regularly planting cover crops will not want to give up the practice and see those gains lost. Three approaches to reducing costs with cover crops include:  

1. Selecting less expensive species and reducing the number of species in a mix. Refer to the Michigan State University Extension cover crops website for recipes from the Midwest Cover Crop Council for cover crop mixes, seeding rate ranges and other guidelines following soybeans and corn.  
2. Decreasing the seeding rates to the lower end of recommended ranges.  
3. Reducing the risk of having to make more than one herbicide application to terminate. Time burndown applications when air temperatures are above 40 degrees for a couple of days before and after the burndown, or plant cover crop species such as oats that are likely to winter-kill. 

Prioritize timely harvest 

Arranging schedules to prioritize soybean harvest when moisture levels are near 14% at the start of the day will ensure the highest profitability when selling grain. Since elevators purchase soybeans based on 13% moisture level, harvesting a few percentage points above this could result in an avoidable expense of $15 per acre in drying costs. Harvesting a few points below this could cost that much due to lost weight at the scales. Refer to the Michigan State University Extension article, “Harvest considerations for overly dry soybeans,” for more details.  

Consider shifting allotted storage capacity and price potential prior to harvest 

Storing grain can sometimes be used to secure a better price on crops. Some farms assign certain grain bins to specific crops each year as part of their marketing strategy. But each year should be reviewed on its own, especially if futures prices and local basis provide an opportunity for one crop to gain a distinct advantage over another.  

For example, compare the expected cash price on a future delivery date to the cash price offered today for both corn and soybeans. Subtract the farm’s storage costs from the expected price on delivery. If the expected cash price for soybeans is higher than corn, then storing soybeans is more profitable than corn. Shifting more grain bin space for soybeans should then be considered in your market planning, especially in use with additional marketing tools like a basis, hedge-to-arrive, or forward contract. Final pricing decisions should also consider harvest conditions of moisture, drying capacity, and grain quality.  

This article was produced by a partnership between Michigan State University Extension and the Michigan Soybean Committee.  

This article was first published in the Michigan Soybean News magazine.