WEST LAFAYETTE, IND. (RFD NEWS) — Farmer sentiment continues to soften heading into the summer growing season, as producers across the country report mounting pressure from persistently high input costs and tighter margins.
According to the latest Purdue University/CME Group Ag Economy Barometer, overall sentiment slipped again in May, with the index falling to 119, down from 121 the previous month. While the decline was modest, economists say the underlying concerns point to continued financial strain across farm country.
High input costs remain the dominant issue. More than half of survey respondents identified fertilizer, fuel, seed, and other production expenses as their top concern, marking a record-high reading in the survey. Nearly half of producers also said elevated input costs are actively limiting improvements in their financial position this year.
The findings reinforce a broader theme emerging across agriculture in 2026: even as commodity production remains strong in several sectors, rising costs continue to erode profitability and delay investment decisions as fall planning and next year’s crop approach.
Economists say this dynamic is shaping everything from fertilizer purchasing decisions to farmland investment sentiment, as producers increasingly weigh long-term sustainability against short-term cash-flow pressures.
Looking ahead, analysts expect input-cost sensitivity to remain a defining factor in producers’ decision-making through the remainder of the growing season, particularly as weather risk and global trade uncertainty continue to influence market outlooks.
Fred Seamon with CME Group joined us on Friday’s Market Day Report to break down the latest survey results and what they signal for farm financial conditions heading into the next production cycle.
Seamon said high input costs once again ranked as the top concern among producers, reaching a new survey high and underscoring continued pressure on profitability across crop operations. He noted that while the result was not unexpected, it reflects persistent cost challenges shaping farmers’ decision-making.
The discussion also highlighted other major factors influencing farm finances, including weaker commodity prices, elevated interest rates, and broader uncertainty tied to global geopolitical tensions, including ongoing conflicts affecting energy and fertilizer markets.
Seamon added that this month’s barometer also explored labor conditions and the growing role of artificial intelligence in agriculture, with responses indicating cautious optimism about technology adoption but continued concerns about workforce availability in rural areas.
The survey also tracked farmland expectations, with producers signaling a more stable but cautious outlook after several years of rapid value appreciation.
Overall, Seamon said the latest barometer points to continued financial stress in the farm economy, driven primarily by input costs, while producers remain focused on managing risk and maintaining long-term operational stability.
