Farmer Sentiment Rises Again in August

For the first time since June 2025, respondents in the August Purdue University/CME Group Ag Economy Barometer survey expect their operation to be better off financially rather than worse off a year from now. The improved outlook raised farmer sentiment from 126 in July to 135 in August.

Optimism about export prospects over the next five years also improved this month, reaching 140 — the highest since December 2025. Higher input costs remained the biggest concern this month.

This month’s survey included three questions about operator skills. The first question had respondents indicate the skill that generated the most return on investment on their farm. Production skills were selected by 29%, followed by financial management and analysis at 23%, strategic planning at 22%, selling products at 14%, and buying inputs at 11%.

The second question asked respondents which skill their farm needed the most improvement in. Strategic planning was selected by 28% of respondents, followed by selling products at 20%, buying inputs at 19%, financial management and analysis at 17%, and production at 16%.

The third question asked respondents to indicate which skills they believed had the most potential for improvement using artificial intelligence. The top three choices, in order, were strategic planning (32%), financial management and analysis (28%), and production (18%) (see Figure 6).

Summary: Farmer sentiment increased again in August, with the largest improvement coming from the future expectations. The Index of Current Conditions increased by 1 point, while the Index of Future Expectations increased by 11 points. Respondents were more optimistic about their financial prospects and land values in the upcoming year and exports in the next five years, but were less confident about making new investments in machinery and buildings.

Source: Ag.Purdue.edu | Read the complete August report here