Key Takeaways
- Index Growth: The Purdue University-CME Group Ag Economy Barometer rose to 116 in February, a three-point increase in Farmers' Sentiment from January.
- Bifurcated Outlook: While the Current Conditions Index jumped 11 points, the Future Expectations Index fell to its lowest level since September 2024.
- Expansion Plans: Despite financial pressures, 51% of producers plan to expand their operations over the next five years.
- Assistance Utilization: Nearly half of farmers (47%) intend to use Farmer Bridge Assistance Program payments to reduce existing debt.
- Sector Disparity: Confidence remains split by commodity, with 63% of crop producers expecting “bad times” compared to only 17% of livestock producers.
Purdue University-CME Group Ag Economy Barometer Shows Modest Gains In Farmers' Sentiment
Farmer sentiment saw a modest rebound in February as the Purdue University-CME Group Ag Economy Barometer reached 116 points. The 3-point increase from January was driven primarily by a stronger assessment of current conditions. However, the gain was tempered by a continued slide in long-term optimism, with the Future Expectations Index sitting 45 points lower than the same period last year.
The survey, conducted from February 2-6, 2026, revealed that 44% of respondents feel their operations are in a worse financial position than a year ago. Concerns regarding agricultural exports and the general direction of the U.S. economy remain elevated, despite moderating slightly from January.
Capital Investment and Farmer Sentiment Growth Trends
The Farm Capital Investment Index saw a slight uptick, rising 3 points to 50. Despite this, actual purchasing intent remains low; only 7% of farmers indicated plans to increase machinery acquisitions in the coming year. High input costs and lower commodity prices continue to be the primary drivers of this cautious spending behavior.
