Farmer sentiment dropped in June as producers continued to struggle with high input costs and declining confidence in their financial outlook, according to the latest Purdue University-CME Group Ag Economy Barometer.
The barometer fell from 119 points in May to 113 points in June, marking the second consecutive monthly decline. The Index of Current Conditions dropped 5 points, while the Index of Future Expectations fell 7 points. June’s Current Conditions Index reached its lowest level since December 2024, sitting 26 points below its December 2025 reading.
The survey, conducted among 400 farmers nationwide from June 15 to 19, revealed that 47% of respondents listed high input costs as their biggest concern. Low crop and livestock prices came in second at 23%.
Financial outlook dims
Only 12% of respondents said their farm operations were better off in June than they had been a year ago. Looking ahead to the next 12 months, 22% expect their farms to be better off financially a year from now.
When asked to identify the main factor limiting improvement in their farm’s financial situation, 42% selected high input costs. Low output prices ranked second at 17%, followed by weather risk at 14%, policy uncertainty at 11%, labor and equipment concerns at 9%, and debt or financial pressure at 8%.
The Farm Capital Investment Index fell 1 point to 40, its lowest level since September 2024.
Mixed views on technology, trade
The survey included questions about artificial intelligence and data-driven tools in agriculture. Approximately 23% of respondents said increased production would be the main benefit of using these tools, while 14% cited reduced labor and 11% mentioned reduced risk or uncertainty. However, 52% said they did not see a meaningful benefit.
About 63% of respondents indicated that recommendations from data-driven tools would be sometimes difficult to follow, while 22% said recommendations would often be difficult to follow.
On trade, approximately 43% of respondents expected agricultural exports to increase over the next five years, while only 9% expected exports to decline. Nearly 85% agreed or strongly agreed that free trade benefits agriculture and most other American industries.
Land values hold steady
The Short-Term Farmland Value Expectations Index declined from 130 in May to 124 in June, while the long-term index increased to 166, tying its record high. Alternative investments, net farm income and inflation were cited as the three factors with the greatest influence on farmland values.
The percentage of producers who reported that the U.S. was headed in the “right direction” was 53% in June, compared to an average of 71% over the last six months of 2025.
