(NAFB.com) – Brazil is projected to produce a record 6.5 billion bushels of soybeans in the 2025-2026 crop season. However, despite the big crop, farm margins are predicted to decline to their lowest level in nearly two decades. Lower soybean prices, high production costs, and weak port premiums have compressed profitability for Brazilian farmers. The situation could lead to a slowdown in soybean acreage expansion in Brazil, which has been increasing year after year since the early 2000s. The high input costs, especially for fertilizers and financial interest rates, are cutting into profits, and many farmers in Brazil will operate at or near breakeven. While some reports anticipate lower fertilizer costs and interest rates expected for the 2026-2027 production cycle, current conditions have prompted a cautious outlook for future acreage expansion. Despite the tighter margins, Brazil continues to dominate in exports, with high export projections predicted, especially to China.