Farmers more optimistic about ag economy in October

WEST LAFAYETTE, Ind. — Farmers were more optimistic about the ag economy in October, according to the Purdue University-CME Group Ag Economy Barometer, which went up 3 points from September.

The survey reported a 16-point increase in the Index of Current Conditions.

The increase coincided with the U.S. Department of Agriculture’s distribution of Agriculture Risk Coverage and Price Loss Coverage payments, although the survey did not specifically ask farmers about those payments.

“While producers saw some relief this month due to government program support, many remain uncertain about how future policy decisions could affect agriculture,” said Michael Langemeier, director of Purdue’s Center for Commercial Agriculture.

“Responses to our policy questions suggest that concerns about trade policy and the country’s broader direction are shaping how producers view agriculture’s long-term prospects.”

Takeaways:

• The Index of Future Expectations fell 2 points, with high input costs remaining the biggest concern.

• The Farm Financial Performance Index rose from 90 to 94.

• The Farm Capital Investment Index jumped from 39 to 55.

• Sixty-two percent agreed or strongly agreed that their balance sheets are strong; the January 2026 survey reported that 75% of respondents indicated they had a strong balance sheet.

• The Short-Term Farmland Value Expectations Index fell 1 point to 125, while the Long-Term Index dropped 6 points to 162.

• Alternative investments, interest rates and inflation were identified as the three factors having the greatest influence on farmland values.

“Although investment sentiment reached its strongest reading in nearly a year, most respondents noted they still hesitate to make large investments, with only 20% saying now is a good time to invest in machinery and buildings,” the report said.

Learn more at purdue.edu/agbarometer.