American farmer sentiment improved modestly in October, supported by a more positive assessment of current financial conditions, although concerns about high input costs and the long-term agricultural policy environment continued to weigh on producer confidence.
The Purdue University-CME Group Ag Economy Barometer rose three points to 126 in October from 123 in September, according to survey results released Tuesday. The survey of 400 U.S. farmers was conducted Oct. 12-16.
The improvement was driven by a 16-point increase in the Index of Current Conditions, while the Index of Future Expectations declined two points.
The stronger assessment of current conditions coincided with the rollout of USDA Agriculture Risk Coverage-County (ARC-CO) and Price Loss Coverage (PLC) payments during October.
Farmers also expressed somewhat greater confidence in their financial prospects. The Farm Financial Performance Index increased to 94 from 90 in September, although it remained below its August peak of 103.
Meanwhile, the Farm Capital Investment Index jumped to 55 from 39, reaching its highest level since December 2025. Despite that improvement, only 20% of respondents said it was a good time to invest in machinery and buildings.
High input costs remained producers' leading concern, while responses to questions about financial resilience suggested mounting pressure on farm balance sheets. Approximately 62% of farmers agreed their operations had strong balance sheets, down from 76% in January. Meanwhile, 60% reported having a solid working capital position.
Concerns about U.S. trade and economic policies also weighed on longer-term expectations. Only 35% of respondents believed increased U.S. tariffs would strengthen American agriculture over the long term, compared with 49% to 70% in previous surveys.
Similarly, fewer than half of respondents believed the U.S. was headed in the right direction in September and October, compared with more than 60% during the period from July 2025 through June 2026.
Despite weaker expectations for farmland values, producers remained generally optimistic about land prices over the next five years.
