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| Best of NAMA 2026 |
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FARMER SENTIMENT RISES AGAIN IN AUGUST AS FUTURE EXPECTATIONS IMPROVE
Sep. 1, 2026
by Michael Langemeier and Joana Colussi, Purdue Center for Commercial Agriculture
West Lafayette, IN -- Farmer sentiment improved for the second month in a row, with the Purdue University-CME Group Ag Economy Barometer (AEB) Index increasing from 126 points in July to 135 points in August (see Figure 1).
For the first time since June 2025, a higher proportion of respondents expect their operation to be better off financially (28%) than worse off (24%) a year from now.
Optimism regarding export prospects over the next five years also improved this month, reaching an index value of 140, the highest since last December. Higher input costs, chosen by 45% of respondents, remained the biggest concern.
The August barometer survey was conducted among 402 farmers across the country from August 10 to 14, 2026.
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% (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% during the last six months of 2025 and 62% in the first quarter of 2026, the percentage of producers who said the U.S. was headed in the "right direction" has ranged from 51% to 57% since April, with 51% of respondents saying that the U.S. was heading in the right direction in August (see Figure 8).
Wrapping Up
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.
Despite the improvement in producer sentiment, important concerns remain. High input costs continue to be the biggest concern, followed by low crop and livestock prices and rising interest rates. Respondents were asked questions related to their farm's key skills. Strategic planning was most frequently identified as the skill needing improvement. Interestingly, respondents also indicated strategic planning as the most likely skill that could be improved through the use of artificial intelligence (AI).
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