Farmer Sentiment Improves For The First Time In Over A Year

Farmer optimism is on the rise, according to the latest Purdue University-CME Group Ag Economy Barometer. For the first time since June of last year, farmers expect their operations to be better off financially a year from now.

The August sentiment index rose nine points to 135, while expectations for future conditions jumped 11 points. Farmers are also more optimistic about U.S. export prospects over the next five years, with that index reaching its highest level since December. Despite this increase, the Farm Capital Investment Index declined by 5 points to 45.

Higher input costs remain the biggest concern.

The survey of 402 farmers also found growing optimism about farm finances, while the farmland investment outlook improved. 65% of respondents called farmland a good investment.

Strategic planning was the top skill farmers said their operations need to improve, and the skill they believe could benefit most from artificial intelligence.

"Producers are looking beyond the day-to-day management of their operations and thinking more strategically about the skills they need to succeed," said Michael Langemeier, the barometer's principal investigator and director of Purdue's Center for Commercial Agriculture. "The emphasis on strategic planning, both as an area for improvement and as a potential application for artificial intelligence, suggests producers see opportunities to use new tools to strengthen decision-making."

Since July 2025, producers have been asked whether they believe the U.S. is moving in the "right direction" or on the "wrong track." The average "right direction" response was 71% in the final six months of 2025 and 62% in the first quarter of 2026. Since April, the percentage of producers who feel the U.S. is heading in the right direction has fluctuated between 51% and 57%. In August, 51% of respondents said the U.S. was moving in the right direction.