Farmer sentiment improved in July, ending a three-month decline, as the Purdue University-CME Group Ag Economy Barometer rose from 113 points in June to 126 points.
The Index of Current Conditions increased 20 points, while the Index of Future Expectations grew 11 points, according to the survey released Tuesday. The improvement came as corn and soybean prices rose from mid-June to mid-July.
The July survey included 405 farmers nationwide and was conducted from July 13 to 17, according to Michael Langemeier and Joana Colussi of the Purdue Center for Commercial Agriculture.
Despite the improved sentiment, only 13% of respondents said their farm operations were better off financially than a year ago. Looking ahead, 23% expect their farms to be better off in 12 months, compared with 24% who expect to be worse off.
High input costs remain a top concern, cited by 46% of respondents in July. When asked about their biggest challenge over the next five to 10 years, 30% named crop or livestock prices, followed by farm transition at 17% and cost control at 16%.
The Farm Capital Investment Index rose 10 points to 50, reaching its highest level since March.
Most farmers expect cash rents to remain stable in 2027, with 19% anticipating increases and 7% expecting declines. Among those predicting increases, most said rents would rise between 5% and 10%.
On agricultural exports, 42% of respondents expect exports to increase over the next five years, while 13% expect them to decline. About 56% said new foreign export markets would likely open to American agricultural goods in the next five years, down from 64% who said the same last July.
The Short-Term Farmland Value Expectations Index fell from 124 in June to 119 in July, while the long-term index dropped from 166 to 152.
When asked if the U.S. is headed in the right direction, 54% of producers said yes in July, up slightly from 53% in June and 52% in May.
