Farmers Sentiment Continues To Drop

Farmer sentiment slipped again in May, shedding two points to 119, according to the latest Purdue University-CME Group Ag Economy Barometer. Weaker views of current conditions were the main driver last month.

High input costs remain the top concern for farmers nationwide. 51% of respondents cited input costs as their biggest worry, while nearly half said those costs are limiting improvements in their financial position this year. Only 14% of farmers said their operation is better off than a year ago, and just 22% expect financial improvement over the next 12 months.

Willingness to make major investments also declined, with the Farm Capital Investment Index dropping to its lowest level since September 2024.

Labor remains a challenge on many farms. About 39% of producers hire non-family workers, and among those employers, 44% reported at least some difficulty finding labor this year.

When asked whether artificial intelligence could help address labor and equipment challenges, 59% said it would not improve their situation, while 41% saw at least some potential benefit.

Looking ahead, farmers remain concerned about rising costs, labor availability, and the impact of the Iran conflict on farm income, even as they hold a somewhat more optimistic outlook for land values.