U.S. farmer sentiment strengthened again in August, driven largely by improved expectations for the future even as concerns about input costs and investment remained elevated.
The Purdue University-CME Group Ag Economy Barometer rose to 135 in August from 126 in July, marking a second consecutive monthly increase. The Index of Current Conditions edged up just 1 point, while the Index of Future Expectations jumped 11 points.
For the first time since June 2025, more farmers said they expected their operations to be better off financially a year from now than worse off. Twenty-eight percent expected improvement, compared with 24% anticipating deterioration.
Confidence in longer-term export prospects also improved, with the export expectations index rising to 140, its highest level since last December.
Still, cost pressures remained a major concern. Higher input costs were cited by 45% of respondents as their biggest worry, followed by low crop and livestock prices and rising interest rates.
The Farm Financial Performance Index increased to 103 in August from 90 at the beginning of the year, suggesting greater optimism about farm finances over the next 12 months. However, the Farm Capital Investment Index fell 5 points to 45, indicating farmers remain cautious about spending on machinery and buildings.
The survey also showed a more mixed view of the broader U.S. economy and policy environment. In August, 51% of producers said the country was headed in the “right direction.” That was below the 71% average during the final six months of 2025 and the 62% average in the first quarter of 2026, with the share holding between 51% and 57% since April.
Strategic planning was identified by 28% of respondents as the farm skill most in need of improvement. It was also viewed as the area with the greatest potential to benefit from artificial intelligence, chosen by 32%, followed by financial management and analysis at 28%.
The survey of 402 U.S. farmers was conducted Aug. 10-14
