Key Takeaways
- The Purdue University/CME Group Ag Economy Barometer rose 13 points in July to 126, ending three straight months of decline in Farmer Sentiment.
- The Current Conditions Index climbed 20 points to 122, and the Future Expectations Index rose 11 points to 129.
- High input costs remained producers’ top concern, cited by 46%; 30% named crop or livestock prices as the biggest long-term challenge.
- The Farm Capital Investment Index rose to 50, also ending a three-month slide.
- The survey polled 405 farmers across the U.S. from July 13-17.
U.S. farmer sentiment rebounded in July after three consecutive months of decline, according to the Purdue University/CME Group Ag Economy Barometer, which rose 13 points to a reading of 126. Both components of the index gained: the Current Conditions Index increased 20 points to 122, while the Future Expectations Index rose 11 points to 129. The rebound suggests some easing of the pessimism that had built up across the spring.
What the Ag Economy Barometer shows
Stronger crop prices during the survey window helped lift both sentiment and investment intentions. The Farm Capital Investment Index climbed to 50, ending its own three-month decline. Thirteen percent of producers reported being better off financially than a year earlier, and nearly a quarter expected their operation’s financial position to improve over the next 12 months. The survey polled 405 farmers nationwide from July 13-17.
“Stronger crop prices during the survey period likely contributed to the improvement we observed in both farmer sentiment and the Farm Capital Investment Index,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture. “At the same time, producers continue to wrestle with high input costs and uncertainty about future crop and livestock prices.”
Costs and prices still weigh on producers
High input costs remained the most-cited challenge, named by 46% of respondents, while 30% pointed to crop or livestock prices as the biggest hurdle over the next five to 10 years. Interest in marketing education was strong, with 44% of producers ranking it their top risk-management priority as they navigate an uncertain pricing environment for crop and commodity markets. Farm transition and cost control ranked as the next-highest long-term concerns.
Ag Economy Barometer signals on farmland and exports
Producers were less upbeat about farmland values: the Short-Term Farmland Value Expectations Index fell 6 points to 118 and the long-term index dropped 14 points to 152. On trade, 42% expect U.S. agricultural exports to rise over the next five years, and 56% think new foreign markets will open in that period, though both readings have cooled from a year earlier. Respondents cited alternative investments, net farm income and interest rates as the biggest factors shaping land values.
