Ag economy barometer: Farmers worried about farm economy

Farmer sentiment dropped again in June as the Purdue University-CME Group Ag Economy Barometer Index declined from 119 points in May to 113 points in June.

WEST LAFAYETTE, Ind. — High input costs continue to make farmers worried about the agricultural economy, according to the latest Purdue University-CME Group Ag Economy Barometer. The barometer declined from 119 points in May to 113 points in June, with 47% of farmers identifying input costs as their biggest challenge. That’s more than double the number who pointed to low crop and livestock prices.

“While high input costs remain the primary constraint on farm financial performance, producers are continuing to make decisions in a broader environment shaped by technology adoption, trade expectations and long-term land value outlook,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture. Report highlights: • The Index of Current Conditions fell by 5 points. •

The Index of Future Expectations fell by 7 points. • 12% of respondents said their farms were better off financially than a year ago, while 22% expected their operations to improve over the next 12 months. •

The Farm Capital Investment Index declined to its lowest level since September 2024. • Approximately 63% said artificial intelligence-generated recommendations would be sometimes difficult to follow, while 22% said they would often be difficult to follow.

• 43% expected exports to increase over the next five years. • 85% agreed or strongly agreed with the statement that free trade benefits agriculture and most other American industries. • Short-term farmland value expectations declined from a reading of 130 to 124.

• Long-term farmland value expectations remained strong, rising to 166 and tying the record high. • Respondents cited alternative investments, net farm income and inflation as the factors with the greatest influence on farmland values. Read the full report at purdue.edu/agbarometer.