WEST LAFAYETTE, Ind. (RFD-TV News) — Farmer sentiment weakened sharply in September as producers grew more concerned about input costs and farm finances, according to the Purdue University-CME Group Ag Economy Barometer.
The overall index fell 12 points from August to 123. The Index of Current Conditions dropped 18 points, while Future Expectations declined nine. Only 22 percent of respondents expect their farms to be better off financially a year from now, compared with 35 percent expecting worse conditions.
Higher input costs were the top concern for a record 52 percent of respondents, and 54 percent said input expenses were the main factor preventing financial improvement. The Farm Financial Performance Index fell to 90, while the Farm Capital Investment Index dropped six points to 39.
Among corn and soybean producers, 73 percent expect cash rents to remain steady in 2027. About 46 percent currently plant cover crops, while only 19.9 percent said they were not concerned about U.S. soybean competitiveness with Brazil.
Long-term farmland expectations remained strong, with that index reaching a record 168.
Dr. Michael Langemeier, a Purdue University professor of agricultural economics and the report’s senior author, joined us on Wednesday’s market Day Report to discuss the drop in sentiment.
In his interview with RFD-TV News, Langemeier said it was not surprising given the combination of higher input costs and concerns about farm finances.
“Corn and soybean prices did increase from mid-August to mid-September,” Langemeier said. “But you also had increases in diesel prices and concerns about fertilizer prices.”
Input Costs Weigh on Farmer Sentiment
Langemeier said diesel and fertilizer were among the biggest cost concerns producers mentioned in open-ended survey responses.
He said diesel prices increased 80% from September 2025 to September 2026 at the farm level, while fertilizer prices increased 12% to 15%.
“Those concerns overrode any positive sentiment concerning an increase in corn and soybean prices,” Langemeier said.
The financial performance index also declined about 12 points, which Langemeier said was consistent with the drop in the Ag Economy Barometer and the current conditions index.
The farm capital investment index also declined.
Cash Rent Expectations Remain Steady
The September survey included questions specifically for corn and soybean producers, including their expectations for cash rents.
Most respondents expected cash rents to remain about the same as the previous year.
Langemeier said that is consistent with recent Corn Belt surveys showing expectations for similar cash rents in 2027 compared with 2026.
However, 22% of respondents expected cash rents to increase in their area.
Cover Crop Adoption Holds Steady
The survey also asked producers about cover crops for the sixth consecutive year.
Forty-six percent of respondents said they currently plant cover crops, which Langemeier said is consistent with previous surveys showing adoption between 45% and 50%.
However, 22% said they had planted cover crops in the past but are no longer doing so.
Soybean Competitiveness Raises Concern
Soybean producers also were asked about the competitiveness of U.S. soybean production compared with Brazil.
Langemeier said 80% of respondents were either concerned or very concerned about U.S. competitiveness.
At the same time, about 40% expected U.S. soybean exports to increase over the next five years.
Langemeier said that figure was slightly below the roughly 45% who expect overall U.S. agricultural exports to increase, but still reflected optimism about future soybean exports.
Farmland Values Remain a Bright Spot
Despite concerns about farm financial performance and input costs, Langemeier said producers remain optimistic about farmland values.
He said respondents were optimistic about short-term land values and even more optimistic about the longer-term outlook.
The percentage of respondents who expected farmland values to increase over the next five years reached a record in the September survey.
“There’s a lot of optimism with respect to farmland values,” Langemeier said.
LEARN MORE: Ag Economy Barometer
