Farmer confidence took a hit in September as worries about rising input costs reached an all-time high, according to the latest Ag Economy Barometer from Purdue University and CME Group .
The survey of 400 farmers nationwide, conducted Sept. 14-18, showed 52% of respondents now cite higher input costs as their top concern, a new record. Overall sentiment dropped from 135 points in August to 123, with the Index of Current Conditions falling 18 points.
The financial outlook appears increasingly pessimistic. About 35% of farmers expect their operations to be worse off financially a year from now, compared with just 22% who anticipate improvement. The Index of Future Expectations fell 9 points.
“Producer sentiment this month reflects a growing divide between concerns about the near term and expectations for the longer term,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture.
The Farm Financial Performance Index dropped from 103 in August to 90, while the Farm Capital Investment Index fell 6 points to 39.
Still, not all indicators point downward. The Long-Term Farmland Value Expectations Index climbed to a record 168, up 5 points from August. Farmers cited alternative investments, inflation and interest rates as the main factors likely to influence farmland values.
Most producers, around 73%, expect cash rents to hold steady in 2027. Among the 22% anticipating increases, about 47% predict gains of 0% to 5%.
The survey found 46% of respondents currently plant cover crops, with roughly one-third having done so for more than 10 years. Another 22% said they have planted cover crops in the past.
On soybean exports, 37% of corn and soybean producers expect U.S. exports to rise over the next five years, while 10% foresee a decline. Competition from Brazil remains a concern, just under 20% said they weren’t worried about the U.S. position relative to Brazil.
September marked a milestone in national sentiment. For the first time since the question was introduced in July 2025, fewer than half of respondents said the U.S. was headed in the right direction.
