Farmer Sentiment Dipped In September

After moving higher in August, farmer sentiment weakened in September, according to the latest Purdue University-CME Group Ag Economy Barometer. The index fell 12 points to 123, with farmers becoming less optimistic about both current conditions and their financial outlook. Higher input costs remain the biggest concern, cited by a record 52% of respondents.

Crop Producers A Bit More Optimistic

The percentage of respondents who thought that crop producers would have widespread good times in the next five years increased from 29% in August to 40% in September. In contrast, the percentage who thought that livestock producers would have widespread good times decreased from 64% in August to 55% in September.

More than half say those costs are limiting improvement in their farm’s financial situation. That pessimism is also showing up in investment plans. The Farm Financial Performance Index fell to 90, while the Farm Capital Investment Index dropped to 39.

More Than Half Of Farmers Feel The U.S. Is Headed In The Wrong Direction

Since July 2025, producers have been asked whether they think the U.S. is headed in the “right direction” or on the “wrong track.” After averaging 71% during the last six months of 2025 and 62% in the first six months of 2026, the percentage of producers who said the U.S. was headed in the “right direction” ranged between 51% and 54% in July and August, before dropping below 50% in September (48%). This is the first time since the question was introduced that less than half of respondents said the U.S. was headed in the “right direction,” indicating a less positive view of the country’s direction among producers.

Still, there is some strength in farmland. The long-term farmland value expectations index reached a record high of 168.