Farmers pessimistic about future of ag economy

WEST LAFAYETTE, Ind. — The Purdue University Ag Economy Barometer fell 10 points to a reading of 125 — the third month of declines.

Farmers expressed concern about the future of the ag economy. Crop producers responded with much less optimism than livestock producers, reflecting the profitability disparity between the two.

“Beef cattle operations in particular are experiencing record profitability as the smallest cattle inventory since 1951 has pushed cattle prices to record levels,” the report stated. “This stands in sharp contrast to returns for crop production, which have weakened in 2025.”

“The August Ag Economy Barometer survey results show that U.S. farmers generally expect their financial performance for the coming year to drop from the previous year,” said Michael Langemeier, the barometer’s principal investigator.

“Despite a weakening Short-Term Farmland Value Expectations Index in August, more farmers still expect farmland values to rise rather than to weaken.

“Lastly, the percentage of farmers citing expectations for rising operating debt because of unpaid operating debt carrying over from the previous year could signal increasing farm financial stress in production agriculture.”

Read the complete report at purdue.edu/agbarometer.