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| Best of NAMA 2026 |
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FARMER SENTIMENT SLIPS AGAIN AS HIGH INPUT COSTS REMAIN TOP CONCERN
Jun. 2, 2026
by Michael Langemeier and Joana Colussi, Purdue Center for Commercial Agriculture
West Lafayette, IN -- Farmer sentiment dropped again in May as the Purdue University-CME Group Ag Economy Barometer (AEB) Index declined from 121 points in April to 119 (see Figure 1). The Current Conditions Index fell by 8 points, while the Future Expectations Index increased by 1 point (see Figure 2). This month's Current Conditions Index was 21 points below last year's December index, reaching its lowest level since December 2024.
The percentage of respondents who listed high input costs as their biggest concern was 51% in May, reaching a new high. In a related question, 46% of respondents indicated that high input costs are limiting improvements in their financial position this year.
The percentage of respondents who think the U.S. is headed in the "right direction" declined from 57% in April to 52% in May, the lowest percentage since we started asking this question in July 2025.
The May barometer survey was conducted among 400 farmers across the country from May 11-15, 2026.
In May, the survey also asked farmers to identify the main factor limiting improvement in their farm's financial situation. High input costs were by far the most frequently cited constraint, selected by 46% of respondents. Weather risk ranked second at 19%, followed by low output prices at 14%, labor and equipment concerns at 9%, and debt or financial pressure at 5% (see Figure 4).
Since July 2025, producers have been asked whether they think the U.S. is headed in the "right direction" or on the "wrong track." After averaging 71% over the last six months of 2025, the percentage of producers who reported that the U.S. is headed in the "right direction" fell from 57% in April to 52% in May, the lowest percentage since we started asking this question in July 2025 (see Figure 8).
Wrapping Up
Farmer sentiment decreased from 121 in April to 119 in May. The decline in sentiment was attributable to an 8-point decline in current conditions. The percentage of producers who expected good times over the next five years was 37% in May, which is 16% lower than in the May 2025 survey report. There continued to be a large disparity in expectations between crop and livestock producers. Approximately 31% of respondents expected good times for crop producers, while 68% expected good times for livestock producers.
Concerns about input costs reached a new high, and high input costs were identified as the most important factor limiting improvements in financial performance. A lower percentage of respondents indicated that U.S. policy is headed in the "right direction." However, respondents were relatively more optimistic regarding both short-term and long-term land values.
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