WEST LAFAYETTE, Ind. (RFD-TV) — Optimism among livestock producers helped lift overall farmer sentiment in October, according to the latest Ag Economy Barometer, released by CME Group and Purdue University. The index rose three points from September to 129, reflecting stronger views of current conditions even as future expectations stayed flat.
Michael Langemeier, Director of Purdue’s Center for Commercial Agriculture, says beef-sector profits are keeping livestock producers upbeat, while crop farmers continue to face tighter margins and less favorable outlooks.
The Farm Financial Performance Index dropped 10 points to 78, its lowest since spring, as crop producers reported worsening margins. Still, the Farm Capital Investment Index climbed nine points to 62, supported by livestock producers’ willingness to spend on improvements. Meanwhile, farmland value expectations rebounded — 30 percent of farmers expect land prices to rise next year, up from 24% in September — marking a shift after four months of declines.
In the survey, producers indicated they expect to make changes in crop production management in 2026—particularly in response to low corn prices.
The report also found that farmers who anticipate receiving a supplementary payment from the U.S. Department of Agriculture (USDA) plan to use it primarily for operational needs rather than expanding acreage. Surveyed producers said any future USDA payments would largely go toward debt reduction (53 percent) or working capital (25 percent), with smaller shares earmarked for machinery (12 percent ) or family living (11 percent).
On the trade front, sentiment remained cautious, with many respondents saying increased U.S. tariffs are more likely to hinder the agricultural economy than help it.
Despite ongoing uncertainty over tariffs and weaker financial expectations for crop farms, more than 70 percent of producers still believe the U.S. is headed in the right direction.
Fred Seamon, Executive Director of Ag Research at CME, joined RFD-TV to discuss the survey findings. He noted that the livestock sector’s stronger performance was a key factor in the improved outlook, even as many crop producers continue to face narrow profit margins.
Seamon said his primary takeaway from the survey is that while the farm economy remains under stress, particularly in the crop sector, the modest uptick in sentiment reflects a degree of resilience driven by livestock markets.
