Ag Economy Barometer: Farmers more optimistic about ag economy

WEST LAFAYETTE, Ind. — Farmers were optimistic about the agricultural economy in August, according to the latest Purdue University-CME Group Ag Economy Barometer survey.

For the first time since June 2025, respondents expect their operation to be better off financially rather than worse off a year from now.

Thinking Strategically

The August survey asked farmers to identify the skill with the most return on investment for their farm.

Production skills were most valued at 29%, followed by financial management and analysis at 23% and strategic planning at 22%.

When asked which skill their farm most needed to improve, 28% said strategic planning, 20% said selling products and 19% said buying inputs.

Lastly, when asked which skills could be improved most through artificial intelligence, 32% listed strategic planning, 28% said financial management and analysis and 18% said production.

“Producers are looking beyond the day-to-day management of their operations and thinking more strategically about the skills they need to succeed,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture.

“The emphasis on strategic planning, both as an area for improvement and as a potential application for artificial intelligence, suggests producers see opportunities to use new tools to strengthen decision-making.”

Other Takeaways

Highlights of the report include:

• Optimism about export prospects over the next five years improved in August.

• Higher input costs remained the biggest concern.

• The Farm Financial Performance Index rose from 90 at the beginning of the year to 103 in August.

• The Farm Capital Investment Index declined by 5 points to 45.

• The Short-Term Farmland Value Expectations Index rose by 8 points to 127.

• Alternative investments, interest rates and inflation were listed as the top three influences on farmland values.

View the complete report at purdue.edu/agbarometer.