Farmer Sentiment Improves As Future Expectations Turn Higher

Farmer optimism improved despite continued pressure from high input costs.

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WEST LAFAYETTE, Ind. (RFD News) — U.S. farmer sentiment improved for a second straight month in August, driven primarily by greater optimism about future financial conditions and export opportunities. The Purdue University-CME Group Ag Economy Barometer rose nine points to 135.

The Index of Current Conditions increased just one point, while the Index of Future Expectations jumped 11 points. For the first time since June 2025, more producers expected their farms to be financially better off next year than worse off.

Financial expectations improved, but investment confidence weakened. The Farm Financial Performance Index reached 103, while the Farm Capital Investment Index fell five points to 45.

High input costs remained the top concern for 45% of respondents. Producers also cited low crop and livestock prices and higher interest rates as continuing challenges.

Farmland expectations strengthened, with 65% calling farmland a good investment and the short-term farmland value index rising eight points to 127.

Farm-Level Takeaway: Producer confidence is improving, but high costs and weak investment appetite show the farm economy remains under pressure.
Tony St. James, RFD News Markets Specialis

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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