Ag Economy Barometer: Farmers more optimistic about ag economy in July

WEST LAFAYETTE, Ind. — After three months of declines, the Purdue University-CME Group Ag Economy Barometer rose in July from 113 to 126.

Even with the rebound, producers remain concerned about profitability, the report shows. Forty-six percent of farmers said high input costs were their top concern.

When asked about the biggest challenge to success over the next five to 10 years, 30% of respondents cited crop or livestock prices. Other long-term concerns included farm transition and cost control.

“Stronger crop prices during the survey period likely contributed to the improvement we observed in both farmer sentiment and the Farm Capital Investment Index,” said Michael Langemeier, director of Purdue’s Center for Commercial Agriculture.

“At the same time, producers continue to wrestle with high input costs and uncertainty about future crop and livestock prices. The strong interest in marketing education reflects the need for strategies to help producers navigate an increasingly uncertain pricing environment.”

Since July 2025, farmers have been asked whether they think the United States is headed in the “right direction” or the “wrong track.”

Fifty-four percent of respondents said they believe the United States is headed in the right direction, up slightly from 53% in June and 52% in May, but below the 71% average recorded during the last six months of 2025.

Other report takeaways:

• The Farm Capital Investment Index increased after a three month decline.

• Thirteen percent reported being better off financially than a year ago.

• Nearly one-quarter expect their operation’s financial position to improve over the next 12 months.

• Most farmers expect rental rates to remain stable in 2027.

• Nineteen percent of respondents anticipate cash rents will increase, compared with 7% who expect a decline.

• Producers remain cautiously optimistic about U.S. agricultural exports.

• Forty-two percent expect agricultural exports to increase over the next five years, compared with 13% who expect exports to decline.

• Fifty-six percent believe new foreign export markets for U.S. agricultural goods are likely to open in the next five years.

• Producers were somewhat less optimistic about farmland values in July.

• The Short-Term Farmland Value Expectations Index fell 6 points to 118, while the long-term index declined 14 points to 152.

• Alternative investments, net farm income and interest rates were expected to have the greatest influence on farmland values.

Read the full report at purdue.edu/agbarometer.