Farmer sentiment declined again in June, as producers became less optimistic about both current conditions and the year ahead, according to the latest Purdue University-CME Group Ag Economy Barometer on Tuesday.
The barometer fell to 113 points in June, down from 119 in May. Both major components of the index weakened, with the Index of Current Conditions dropping five points and the Index of Future Expectations falling seven points. The current conditions measure was 26 points below its December 2025 level and reached its lowest point since December 2024.
The June survey, conducted from June 15 to 19 among 400 farmers across the U.S., showed high input costs remain the dominant concern. Of the respondents, 47% listed high input costs as their biggest worry, well ahead of low crop and livestock prices at 23%.
In a related question, 42% of farmers said high input costs were the main factor limiting improvement in their farm’s financial situation this year. Low output prices were cited by 17%, followed by weather risk at 14%, policy uncertainty at 11%, labour and equipment concerns at 9%, and debt or financial pressure at 8%.
Only 12% of respondents said their farm operations were better off in June than a year earlier. Looking ahead, 22% expected their farms to be in better financial shape a year from now.
The Farm Capital Investment Index also slipped one point to 40, its lowest level since September 2024, suggesting producers remain cautious about major purchases despite continued optimism around farmland values.
Longer-term expectations also softened. The share of producers expecting good times in agriculture over the next five years was 32% in June, down 17 points from June 2025. The outlook remained sharply divided by sector, with only about 25% expecting good times for crop producers, compared with 68% for livestock producers.
Despite weaker sentiment, farmers remained broadly positive on trade. Forty-three percent expected agricultural exports to increase over the next five years, while 85% agreed that free trade benefits agriculture and most other American industries.
