Key Takeaways
- The June Purdue University/CME Group Ag Economy Barometer fell 6 points to 113, with the Current Conditions Index dropping to an 18-month low of 102.
- High input costs remained producers' top concern, cited by 47% of respondents, followed by low crop and livestock prices at 23%.
- Just 12% of respondents said their farms were better off financially than a year ago, and only 22% expected improvement over the next 12 months.
- The Farm Capital Investment Index fell to 40, its lowest level since September 2024, while the percentage of producers expecting “good times” over the next five years dropped to 32%, down 17 points from June 2025.
- A majority of respondents, 52%, said they did not see a meaningful benefit from AI and other data-driven farming tools, and 63% said AI-generated recommendations would sometimes be difficult to follow.
Ag Economy Barometer Shows Farmer Sentiment Falling in June
Producers continued to express concern about farm finances as the June Purdue University/CME Group Ag Economy Barometer recorded a 6-point decline in farmer sentiment to 113. The Current Conditions Index fell to an 18-month low of 102, and the Future Expectations Index dropped 7 points. The survey was conducted among 400 farmers nationwide from June 15 to 19.
High Input Costs Remain Top Concern
High input costs remained producers' top concern, with 47% identifying them as the biggest challenge facing their operation, followed by low crop and livestock prices at 23%. A related question found that 42% of respondents feel high input costs are limiting improvements in their financial position this year, while low output prices (17%), weather risk (14%), policy uncertainty (11%), labor and equipment concerns (9%), and debt or financial pressure (8%) rounded out the remaining responses.
Farm Capital Investment and Financial Outlook Lowers Farmer Sentiment
Additional results pointed to ongoing financial strain: just 12% of respondents said their farms were better off financially than a year ago, and only 22% expected their operations to improve over the next 12 months. The Farm Capital Investment Index continued its decline from the March 2026 survey to 40, its lowest level since September 2024.
“While high input costs remain the primary constraint on farm financial performance, producers are continuing to make decisions in a broader environment shaped by technology adoption, trade expectations and long-term land value outlook,” said Michael Langemeier, the barometer's principal investigator and director of Purdue's Center for Commercial Agriculture.
Views on AI and Data-Driven Tools in the Ag Economy Barometer
This month's survey included two questions on the use of AI and other data-driven tools in agriculture. When asked about potential benefits, 23% cited increased production, 14% cited reduced labor needs, and 11% cited reduced risk or uncertainty, though a majority, 52%, said they did not see a meaningful benefit. About 63% said AI-generated recommendations would sometimes be difficult to follow, and 22% said they would often be difficult to follow.
Trade Expectations and Farmland Values
Producers expressed generally positive expectations for agricultural exports over the next five years, with 43% expecting exports to increase and 9% expecting a decline. Eighty-five percent agreed or strongly agreed that free trade benefits agriculture and most other American industries. Longer-term outlooks weakened compared with a year ago, with 32% of respondents expecting “good times” over the next five years, down 17 percentage points from June 2025. Short-term farmland value expectations fell from 130 in May to 124, while long-term expectations rose to 166, tying the record high.
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