WEST LAFAYETTE, Ind. (RFD NEWS) — Farmer sentiment improved in July after three consecutive months of declines, according to the latest Purdue University/CME Group Ag Economy Barometer Index.
The barometer rose to 126 in July, up from 113 in June, as producers reported a more positive outlook on current agricultural conditions. The monthly survey tracks farmer perspectives on the farm economy, future expectations and investment decisions based on responses from approximately 400 producers nationwide.
The July improvement follows a period of declining confidence throughout the spring and early summer, when producers faced pressure from high input costs, weaker commodity prices and concerns about profitability. In June, nearly half of surveyed producers identified high input costs as their biggest concern.
Dr. Michael Langemeier, senior author of the report and Purdue University professor of agricultural economics, joined us on Tuesday’s Market Day Report to explain the latest survey results, explaining that the increase was driven largely by improved views of current conditions.
While sentiment has improved, Langemeier said producers remain focused on several long-term challenges, including commodity prices, cost control and financial conditions.
The survey also examined producer expectations for cash rental rates. Most crop producers expect cash rents to remain steady, while nearly 20 percent of respondents anticipate higher rents and a smaller percentage expect declines.
Trade also remains an important factor shaping producer outlooks. The survey found 42% of farmers expect agricultural trade to increase over the next five years, while more than half said they anticipate new potential trade partnerships developing.
Langemeier said producer attitudes toward the broader U.S. economy and agricultural policy remain cautious, noting that sentiment is still below levels reported during the second half of 2025 as farmers continue to navigate uncertainty surrounding long-term policy issues.
The Ag Economy Barometer also measures producers’ willingness to make major capital investments, which provides insight into confidence in the future of their operations.
Although July’s increase signals improving optimism among farmers, economists say challenges remain as producers continue to monitor input costs, commodity markets, trade developments and farm profitability heading into harvest.
