Improving Consumer Confidence Offers Cautious Demand Signal for Agriculture

Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.

LUBBOCK, Texas (RFD-TV) — U.S. consumers are ending 2025 with improving confidence but restrained spending habits, a combination that carries mixed implications for farm and ranch demand heading into 2026. According to new survey data from Prosper Insights & Analytics, economic confidence is rebounding from month to month. However, it remains below pre-pandemic levels, suggesting households feel more stable but remain selective in their purchases.

Fuel sensitivity remains a key factor for rural America. While fewer consumers report being hit by rising gasoline prices, more than one-quarter still say fuel costs influence how much they drive, a dynamic that affects ethanol demand, freight movement, and discretionary food spending. Consumers continue to prioritize value — shopping sales, using store brands, and relying on large retailers — a behavior that shapes downstream demand for meat, dairy, and processed grain products.

Spending intentions for the next 90 days are steady but subdued, indicating little near-term growth in discretionary categories. However, easing “needs-only” behavior suggests modest room for demand recovery in food and fuel markets if prices stabilize.

For agriculture, the data point to stability rather than expansion.

Farm-Level Takeaway: Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.
Tony St. James, RFD-TV Markets Specialist
Related Stories
Approximately 42,000 birds were affected in the outbreak, officials said.
Beef demand could be influencing other economic sectors, as consumers adjust spending habits to prioritize higher-priced beef products.
AFBF Economist Bearnt Nelson joins us with insights into current turkey flock sizes, HPAI concerns, and production impacts on holiday demand.
“It, all of a sudden, says that tracking and fighting hunger is not a priority, apparently, at the federal level.”
In a final rule published in the Federal Register, the Department states that it will no longer base wage rates on the Farm Labor Survey.
USDA’s report shows wheat strength overall, with winter wheat yields setting records, while spring wheat and rye saw declines. Oats and barley remain constrained by record-low acreage despite stable or rising yields.
Bigger-than-expected corn and wheat stocks are bearish for prices, while soybean figures were neutral. Farmers may face additional price pressure as harvest accelerates.
With China’s pullback, U.S. sorghum producers must broaden their export markets. Building connections now could help stabilize prices and demand for the upcoming larger crop.

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.

LATEST STORIES BY THIS AUTHOR:

Global nitrogen and phosphate prices remain high despite improved supply fundamentals, with limited Chinese exports and stronger fall applications tightening availability.
Record output, larger stocks, and softer exports point to a well-supplied domestic ethanol market as harvest progresses.
The Court may limit emergency tariff powers, complicating a key bargaining tool; ag could see shifts in input costs and export dynamics as China, Brazil, and India talks evolve.
U.S. sugar producers and processors should brace for price pressure and challenging export logistics with global sugar supply ramping up — driven by Brazil, India, and Thailand — especially at the raw processing level.
The Farm Bureau urges trade enforcement, biofuel growth, fair input pricing, and pro-farmer policy reforms to restore long-term certainty.
The Sheinbaum–Rollins meeting signals progress, but the focus remains on fully containing screwworm before cross-border movement resumes.