By Jamie Martin
The latest Ag Economy Barometer from Purdue University and CME Group indicates that while US farmers are facing short-term pressure, they maintain a positive long-term outlook for the agricultural economy.
The index increased slightly to 126 in October, ending a three-month decline. However, the data showed mixed trends: the Index of Current Conditions dropped to 122, while the Index of Future Expectations rose to 128. The results reflect farmers’ optimism about future policy directions and expectations for government support if commodity prices remain weak.
“High production costs and weak crop prices are pressuring farm incomes on US crop farms,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture, "A large majority of US farmers expect government support to bolster farm incomes if crop prices remain weak.”
The survey followed USDA’s September Crop Production and WASDE reports, which highlighted record corn and soybean yields. These high yields have intensified price pressure, further testing farm profitability.
Farmers’ views on tariffs are shifting. Confidence in their long-term benefits dropped for a second month, with only 51% believing tariffs will strengthen the ag economy compared to 70% in spring. Meanwhile, 30% believe tariffs could harm the sector, and nearly one in five remain uncertain.
Regarding farmland values, Purdue economists noted a steady-to-weaker trend. The Short-Term Farmland Values Expectations Index fell six points to 106, suggesting most producers expect land values to hold steady through 2026.
While short-term conditions remain challenging, the survey highlights farmers’ enduring faith in the resilience of US agriculture and the belief that supportive policies will sustain future growth.
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Categories: National