High Input Costs Push Farmer Sentiment Lower Again

A new Purdue survey found rising production costs continue to weigh on farm finances and investment decisions.

WEST LAFAYETTE, Ind. (RFD News) — Farmer sentiment weakened again in June as high input costs remained the top concern for producers.

The Purdue University-CME Group Ag Economy Barometer fell to 113 in June, down from 119 in May. Dr. Michael Langemeier and Joana Colussi with Purdue’s Center for Commercial Agriculture say both current conditions and future expectations declined.

Input costs dominated the survey. Forty-seven percent of farmers listed high input costs as their biggest concern, while 42 percent said input costs are limiting improvement in their farm’s financial position this year. Low crop and livestock prices ranked second.

Only 12 percent of respondents said their farm was better off than a year ago. The Farm Capital Investment Index also slipped to 40, its lowest level since September 2024.

Farmers remained more optimistic about trade and land values. Eighty-five percent agreed that free trade benefits agriculture and most American industries.

Farm-Level Takeaway: High input costs continue to squeeze farm finances and slow capital investment decisions.
Tony St. James, RFD News Markets Specialist

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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