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Farmer sentiment strengthened for the second straight month, with the Purdue University-CME Group Ag Economy Barometer rising nine points in August to 135.
The biggest improvement came in farmers’ expectations for the future.
The Future Expectations Index jumped 11 points, while the Current Conditions Index gained just one point. For the first time since June 2025, more farmers expect their operations to be financially better off a year from now than worse off.
28% expect improvement, compared with 24% expecting conditions to worsen.
Optimism about export prospects also reached its highest level since December.
However, higher input costs remain the biggest concern, cited by 45% of respondents.
Farmers were less optimistic about making major capital purchases, with the Farm Capital Investment Index falling five points to 45.
Meanwhile, the Short-Term Farmland Value Expectations Index rose eight points to 127, and 65% of farmers said farmland remains a good investment.
