 |
| CLICK HERE TO VIEW CURRENT ISSUE |
 |
| Best of NAMA 2026 |
|
 |
|
AG ECONOMY BAROMETER FALLS AGAIN, MAJOR CONCERN IS HIGH INPUT COSTS
Jul. 7, 2026
by Michael Langemeier and Joana Colussi, Purdue Center for Commercial Agriculture
West Lafayette, IN -- Farmer sentiment dropped again in June as the Purdue University-CME Group Ag Economy Barometer (AEB) Index declined from 119 points in May to 113 points in June (see Figure 1). The Index of Current Conditions fell by 5 points, while the Index of Future Expectations fell by 7 points (see Figure 2).
June's Current Conditions Index was 26 points below its December 2025 reading, reaching its lowest level since December 2024.
The percentage of respondents who listed high input costs as their biggest concern was 47% in June, with the concern about low crop and livestock prices at 23% coming in as a distant second. In a related question, 42% of respondents indicated that high input costs are limiting improvements in their financial position this year.
The June barometer survey was conducted among 400 farmers across the country from June 15 to 19, 2026.
As in last month's survey, the June survey 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 42% of respondents. Low output prices ranked second at 17%, followed by weather risk at 14%, policy uncertainty at 11%, labor and equipment concerns at 9%, and debt or financial pressure at 8% (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. was headed in the "right direction" was 52% in May and 53% in June (see Figure 8).
Wrapping Up
Farmer sentiment decreased from 119 in May to 113 in June, with declines in sentiment regarding both current conditions and future expectations. The percentage of producers who expected good times over the next five years was 32% in June, which is 17 percentage points lower than in the June 2025 survey results. There continued to be a large disparity in expectations between crop and livestock producers. Approximately 25% of respondents expected good times for crop producers, while 68% expected good times for livestock producers.
Input costs remained a top concern, with high input costs identified as the most important factor limiting improvements in financial performance. Despite concerns about the future, respondents remained optimistic regarding both short-term and long-term land values.
To read the full report click here.
|
|
|
|
|
