By Andi Anderson
Farmer confidence weakened in September as rising production costs and increasing financial pressures created concerns about the agricultural economy. The latest Purdue University and CME Group Ag Economy Barometer survey showed that higher input costs remain the top challenge facing producers across the United States.
The survey, conducted among 400 farmers from September 14-18, found that overall farmer sentiment fell from 135 points in August to 123 points in September. More than half of respondents, 52%, identified rising input costs as their biggest concern, marking the highest level recorded by the survey.
According to Michael Langemeier, principal investigator of the barometer and director of Purdue’s Center for Commercial Agriculture, farmers are balancing short-term challenges with a more positive long-term outlook.
“Producer sentiment this month reflects a growing divide between concerns about the near term and expectations for the longer term,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture. “While higher costs and financial pressures are clearly shaping producers’ views of current conditions, strong expectations for farmland values point to a more positive outlook for some aspects of the agricultural economy.”
The Index of Current Conditions experienced a significant decline, while the Index of Future Expectations also moved lower. Many farmers expressed concerns about their financial position over the next year. Thirty-five percent of respondents expect their farming operations to be financially worse off in the coming 12 months, compared to 22% who believe conditions will improve.
This cautious outlook was also reflected in the Farm Financial Performance Index, which dropped from 103 in August to 90 in September. In addition, the Farm Capital Investment Index declined, indicating reduced confidence in making large farm investments.
The survey also explored trends among corn and soybean producers. Most respondents, about 73%, expect cash rental rates to remain unchanged in 2027. Among those anticipating higher rents, nearly half believe increases will be small, ranging from 0% to 5%.
Cover crop adoption continues to play an important role in farm management. Nearly half of surveyed farmers reported currently planting cover crops. Many of these producers have used cover crops for more than a decade, while others have introduced them more recently to improve soil health and sustainability.
When discussing soybean markets, farmers expressed cautious optimism. Thirty-seven percent expect U.S. soybean exports to grow during the next five years, while only a small percentage foresee a decline. However, many producers remain concerned about competition from Brazil, one of the world's largest soybean-producing countries.
Farmland values continue to be a bright spot for many producers. Although short-term farmland value expectations remained mostly stable, long-term expectations reached a record high. Farmers identified inflation, interest rates, and alternative investments as key factors likely to influence land values in the future.
The survey also measured producers’ views on the direction of the United States. For the first time since the question was introduced in 2025, fewer than half of respondents said the country was headed in the right direction. This shift reflects growing uncertainty among farmers as they face higher operating costs, changing market conditions, and financial challenges.
Despite current concerns, many producers remain hopeful about agriculture’s long-term prospects, particularly regarding farmland values and future opportunities. The results underscore the need for careful financial planning as farmers prepare for upcoming production seasons.
Photo Credit: gettyimages-alexeyrumyantsev
Categories: Indiana, Rural Lifestyle