Farmer sentiment has taken a nose dive after increases seen in July.
Farmer sentiment weakened sharply in the month of August, leading to the 12-point drop month over month. The 100 reading places current farmer sentiment on par with that seen in late 2015 and early 2016 when the U.S. ag economy was in the early stages of a downturn.
Farmers are more pessimistic about near-term conditions, citing concerns over farm financial performance and a weak outlook for capital expenditures by farm operations.
Farmers are also less optimistic about farmland values this summer than in recent years. 70% of crop farmers included in this month’s survey say that they anticipate farmland cash rental rates to remain the same in 2025.
