WEST LAFAYETTE, Ind. (RFD News) —Purdue University’s latest Ag Economy Barometer showed farmer sentiment slipping slightly in May as input cost concerns continued growing.
The index fell two points in May to 119, driven largely by ongoing concerns about rising input costs.
Current conditions also declined, falling eight points from the previous month. Just 14 percent of respondents said their operation was better off in May compared to a year earlier.
Looking ahead, future expectations increased slightly, rising one point.
While producers remain concerned about input prices, respondents were generally more optimistic about both short-term and long-term farmland values.
Senior author on the report, Dr. Michael Langemeier with Purdue University, joined us on Tuesday’s Market Day Report for a closer look at what’s driving producer concerns and where sentiment stands moving forward.
In his conversation with RFD News, Langemeier addressed why the percentage of producers listing high input costs as their top concern reached a new high in this month’s survey.
The discussion also focused on the next-largest factors affecting producers’ financial situations, as well as how the ongoing conflict in Iran continues to weigh on producers’ outlooks and commodity markets.
This month’s survey also examined farm labor concerns and the growing role of artificial intelligence across agriculture.
Finally, Langemeier shared his broader takeaway from the latest barometer results and his expectations for the future.
