Ohio State University Extension production business management specialist Barry Ward is telling row-crop producers to build their 2027 plans around liquidity and working capital rather than headline commodity prices.

His message lands as stronger corn and soybean prices have improved the projected profit picture for 2026. But Ward cautions that the cost side of the ledger has not reset with it.

"We've got elevated cost structures that we're not going to be…" Ward said, pointing to input and overhead expenses that remain elevated even as grain markets have recovered from their recent lows.

The core of Ward's advice is balance-sheet discipline. Producers coming off several years of tight margins have drawn down cash reserves and working capital, and he argues that rebuilding those positions — rather than expanding or capitalizing on improved revenue — should be the priority heading into 2027.

That framing matters for how growers sequence decisions this winter and into the growing season. Cash-rent negotiations, input purchasing, machinery replacement and debt structuring all flow from the strength of a farm's working capital position. When liquidity is thin, fixed-cost commitments that looked manageable at higher price expectations can quickly compress margins again if grain prices retreat.

Ward's caution also reflects the asymmetric recovery now underway in row-crop country. Commodity prices have firmed, improving gross revenue projections for corn and soybean producers in 2026. Expense structures, by contrast, adjust far more slowly. Costs for inputs, land, labor and equipment embedded during the high-price years tend to stick, which means the margin recovery producers expect on paper may be narrower once actual cost-of-production figures come in.

For farm financial benchmarking, that distinction is critical. Ohio State University Extension's business analysis program tracks whole-farm cost of production across Ohio cropping operations, and Ward's extension role centers on translating that data into planning guidance for producers. His 2027 outlook puts cost control alongside revenue: even with better prices, farms that carry heavy fixed-cost loads or depleted liquidity remain exposed to downside price movement and production risk.

The practical takeaway for growers is to stress-test 2027 budgets against both the current price environment and a weaker one, and to treat working capital — current assets minus current liabilities — as the buffer that determines whether a farm can absorb a bad year without forced sales or restructuring.

Ward's guidance positions liquidity preservation, cost discipline and working capital management as the defining financial tasks for producers planning for 2027.