A new survey reveals that farmers are less optimistic as rising input costs and financial uncertainty continued to pressure the farm economy.
That’s according to the latest Purdue University-CME Group Ag Economy Barometer.
The index declined from 121 in April to 119 in May.
The Current Conditions Index fell eight points to its lowest level since December 2024, while the Future Expectations Index edged up one point.
Input costs remained producers’ top concern.
51% of farmers identified high input costs as their biggest challenge, the highest level recorded by the survey.
Nearly half of respondents, 46%, say rising expenses are preventing improvements in their financial position.
Only 14% of farmers say their operation is better off financially than a year ago, while 22% expect conditions to improve over the next 12 months.
The Farm Capital Investment Index dropped three points to 41, signaling reduced willingness to make major purchases.
“High input costs are limiting improvements in their financial position this year,” researchers noted.
