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Aug. 5, 2026 by Michael Langemeier and Joana Colussi, Purdue Center for Commercial Agriculture West Lafayette, IN -- Farmer sentiment improved in July, ending three consecutive months of decline, as the Purdue University-CME Group Ag Economy Barometer (AEB) Index increased from 113 points in June to 126 points in July (see Figure 1). Both subindices also increased: the Index of Current Conditions rose by 20 points, while the Index of Future Expectations increased by 11 points (see Figure 2). This improvement came as corn and soybean prices increased from mid-June to mid-July. The percentage of respondents who listed high input costs as their biggest concern was 46% in July. When asked about their biggest challenge to success in the next five to ten years, 30% of respondents indicated that crop or livestock prices were their biggest challenge. The July barometer survey was conducted among 405 farmers across the country from July 13 to 17, 2026. This month's survey asked farmers about their biggest challenge to the success of their operation over the next five to ten years. Crop or livestock prices were selected by 30%, followed by farm transition at 17%, cost control at 16%, financial considerations and weather at 13%, trade at 7%, and government policy at 3% (see Figure 4). Consistent with these results, when farmers were asked about their most crucial risk management education need, the most common response was marketing, selected by 44% of respondents. Financial risk at 17% and strategic risk at 14% were distant second and third choices. 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% during the last six months of 2025, the percentage of producers who said the U.S. was headed in the "right direction" was 54% in July, compared with 53% in June and 52% in May (see Figure 8). Wrapping Up Farmer sentiment rebounded in July after three consecutive months of decline, reflecting improved views of both current conditions and future expectations. The 20-point increase in the Index of Current Conditions coincided with a 10-point rise in the Farm Capital Investment Index, suggesting that producers felt somewhat more confident about current financial conditions and major investment decisions. Despite this improvement, important concerns remain. High input costs continue to limit expectations for better farm financial performance, while crop and livestock prices were identified as the leading long-term challenge. Most producers expect cash rents to remain relatively stable in 2027, though more respondents anticipate increases than declines. Producers also remained moderately optimistic about agricultural trade. Overall, the July results point to improved near-term sentiment, but producers remain concerned about costs, commodity prices, and longer-term profitability. To read the entire report click here. Tweet |
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