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FARMER SENTIMENT IMPROVES DESPITE RISING INPUT COSTS CONCERNS
Apr. 7, 2026
By Michael Langemeier and Joana Colussi, Purdue Center for Commercial Agriculture
West Lafayette, IN -- Farmer sentiment improved in March as the Purdue University-CME Group Ag Economy Barometer (AEB) Index rose from 116 points in February to 127 (see Figure 1). The Current Conditions Index increased by 6 points, while the Future Expectations Index increased by 14 points (see Figure 2). The Future Expectations Index this month was still 12 points below last year's December index, and 16 points below last year's March index.
The percentage of respondents who cited high input costs as their biggest concern increased from 44% to 46% this month. However, the percentage of respondents who think the U.S. is headed in the "right direction" and who expect land prices to be higher five years from now also increased.
The March barometer survey was conducted among 400 farmers across the nation from March 16-20, 2026.
As in the last few months, producers were asked whether the U.S. is headed in the "right direction" or on the "wrong track". The percentage of producers who indicated the U.S. is headed in the "right direction" increased from 59% in February to 65% in March (see Figure 7).
Wrapping Up
Farmer sentiment increased from 116 in February to 127 in March. The increase in sentiment for future expectations was larger than the corresponding increase in sentiment for current conditions. In March, the percentage of producers who expected good times in the next five years was 37%, which is 12% lower than the share reported in March 2025. There continues to be a large disparity in expectations between crop and livestock producers. Approximately 31% of respondents expected good times for crop producers, while 63% expected good times for livestock producers.
Overall, the March results suggest that while producers report improved sentiment, concerns about input costs increased. A higher percentage of respondents indicated that U.S. policy is headed in the right direction, and a higher percentage expected land values to increase in the next five years, pointing to more optimism regarding long-run sentiment.
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