Ag Economy Barometer Inched Higher In July

Farmer confidence is showing signs of recovery.

The latest Purdue University/CME Group Ag Economy Barometer climbed 13 points in July after three straight months of declines, as stronger crop prices helped boost producers' outlook. The Current Conditions Index increased 20 points to 122, while the Future Expectations Index rose 11 points to 129.

Many Concerns For Today's Farmer

High input costs remained producers' top concern, with 46% identifying them as the biggest challenge facing their operation. When asked about the biggest challenge to success over the next five to 10 years, 30% of respondents cited crop or livestock prices.

Beyond crop and livestock prices, producers identified farm transition (17%) and cost control (16%) as the second- and third-highest concerns over the next 5-10 years. Other major issues included financial considerations and weather at 13%, trade at 7%, and government policy at 3%. These priorities also shaped producers' educational interests, with marketing emerging as the top risk management education need for 44% of respondents, far outpacing financial and strategic risk management.

Farmers Are Feeling More Optimistic

Since July 2025, producers have been asked whether they think the U.S. is headed in the "right direction" or on the "wrong track." 54% of respondents said they believe the U.S. is headed in the right direction, up slightly from 53% in June and 52% in May, but below the 71% average recorded during the last six months of 2025.

Farmers also expressed more optimism about their financial position over the coming year, even though most say they're no better off today than they were a year ago. Looking ahead, most farmers expect cash rental rates to stay steady in 2027, and many remain cautiously optimistic that U.S. agricultural exports will grow over the next five years.