Diversification, Foresight Drive Farm Profitability in 2026

Diversification – as well as a bit of luck and foresight – have made the difference this year between profit and loss for Ethan, South Dakota farmer Lewis Bainbridge. Semi-retired at this point, Bainbridge feels lucky to be less affected by current high input costs resulting from the conflict with Iran and restrictions on passage through the Strait of Hormuz.

Bainbridge’s agriculture leadership history includes being a charter member of the South Dakota Corn Growers Association, serving as chairman of the Corn Utilization Council. That was before his involvement in the soybean industry at the state and national levels. He chaired the South Dakota Soybean Research and Promotion Council, and in 2018, Bainbridge chaired the United Soybean Board. Even since reducing his day-to-day farming responsibilities, Bainbridge maintains keen awareness of spending for farm inputs.

“I don't write any big checks anymore, but my sons do all of that. They priced and paid for all their fertilizer last year, as well as diesel fuel. So, they had the lion's share of their input costs taken care of last year,” Bainbridge told the South Dakota Soybean Network.

A dry spring has ruined Bainbridge’s winter wheat crop, at least for grain. He and his family salvaged what little there is by baling it. That’s where diversification has helped. Bainbridge and his sons can use that wheat forage in their cow/calf operation.

“That's been incredible,” he marveled, referring to current beef production profitability. “I've never seen cattle prices like they are. So, for our little spot on Earth, we're setting in pretty good shape. You know, many of our neighbors are not. When you don't have the livestock operation, now what are you going to do with your failed winter wheat and, you know, the droughts? And then if you didn't have some of your inputs covered last year, this is going to be a very tough year.”

Diversification is not a panacea. Even though cattle prices and soybean prices are good, Bainbridge says too often everything is bad at once.

“Long term, though, I would have to give high kudos to being diversified. We have some ground that's not cropable, so we can utilize that for cows and grass,” said Bainbridge. “And raising a number of crops, we have diversification there, so we can usually produce some sort of feed. So yes, the other positive, as I see it, is that it keeps everyone fully employed so three families can eat.”