WEST LAFAYETTE, Ind. (RFD NEWS) — Farmer sentiment improved in July after three consecutive monthly declines as stronger crop prices lifted views of current conditions and the near-term outlook. Purdue University’s Center for Commercial Agriculture says producers became more willing to consider major investments, although financial caution remains widespread.
The rebound reflected better corn and soybean prices during the survey period. Farmers reported greater confidence in current conditions, while expectations for the coming year also strengthened.
High input costs remain the most common immediate concern. Longer term, producers view crop and livestock prices as their greatest challenge, followed by farm transition, cost control, finances, and weather.
Most farmers expect cash rents to remain stable in 2027, but more anticipate increases than declines. Producers also remain moderately optimistic about agricultural exports and the possibility of developing new foreign markets.
The improvement suggests near-term pressure has eased without resolving agriculture’s broader profitability problems. Farmers remain concerned about commodity prices, expenses, farmland values, and their ability to protect margins through marketing and risk management.
Fred Seamon, executive director of agricultural research at CME Group, joined us on Wednesday’sMarket Day Report to discuss theJuly Ag Economy Barometer survey and the factors driving the rebound in farmer sentiment.
In his interview with RFD News, Seamon said the improvement was more of a relief than a surprise after several months of declining sentiment. He pointed to stronger crop prices during July as a likely contributor and noted the barometer has moved back above what he considers a key benchmark.
Seamon also discussed producers’ biggest concerns for the future of their operations. While rising input costs remain the top current challenge, he said respondents looking five to ten years ahead are increasingly focused on agricultural prices and broader financial considerations, suggesting producers should continue evaluating their long-term risk management strategies.
The survey also examined cash rent expectations ahead of lease negotiations for next year. Seamon said most respondents expect rental rates to remain stable, while 19% anticipate increases and 7% expect rents to decline. Among those expecting higher rents, most projected increases of 5% to 10%.
Agricultural exports also remained a key topic in the survey. Seamon said 42% of respondents expect exports to increase over the next five years, while 56% believe new foreign markets will open for U.S. agricultural products.
The report also tracked producer views on the direction of the country. Seamon said 54% of respondents believe the United States is headed in the right direction, a slight improvement from May, though still below levels reported during the second half of 2025.
