Farmer Sentiment Continues To Fall, Future Doesn’t Look Too Bright

Farmer sentiment dipped for the third straight month in August, with the Purdue University-CME Group Ag Economy Barometer falling 10 points to 125.

“The barometer has now fallen 33 points from its 2025 peak that was set back in May at 158," said Purdue University’s James Mintert.  "Future expectation index fell 16 points to 123, and the future expectation index is now down 41 points from its peak, also set back in May.”

Farmers again reported weak financial expectations for their farms in the coming year.  As in July, the August Farm Financial Performance Index remained below 100.  The reading of 91 barely changed from July's figure.

Mintert said while farmers are markedly less optimism about the future, Ag exports went against that trend.

“Producers became more optimistic about future Ag trade prospects in August," Mintert said.  "The percentage expecting exports to increase rose 9 points to 52%, while the percentage expecting exports to fall actually fell three points to 10% of producers in our survey.  Overall, producers trade outlook was the most optimistic reading of 2025, exceeding the previous peak that was set back in May.”

Mintert noted some of the optimism when it comes to trade appears to come from an expectation that the U.S. will have new export market opportunities.  He noted 68% of the respondents in the August survey said they expect to see additional markets open; an increase from the 64% reported a month earlier.  Mintert added when the trade question was asked in the past, in 2020 and 2021 for example, roughly 60% of respondents said they thought farmers would have access to new markets.

Click Here for more on the August Ag Economy Barometer.

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