U.S. farmer sentiment weakened in September as concerns about high input costs intensified and producers grew more pessimistic about their financial outlook, according to the latest monthly Purdue University-CME Group Ag Economy Barometer on Tuesday.
The overall barometer fell 12 points from August to 123 in September. The Index of Current Conditions dropped 18 points, while the Index of Future Expectations declined 9 points.
Higher input costs remained the leading concern, cited by a record 52% of respondents. More than half, 54%, also said elevated input expenses were the main factor preventing improvement in their farm’s financial position.
Financial expectations weakened accordingly. Just 22% of producers said they expect their operation to be better off financially a year from now, compared with 35% who expect to be worse off. The Farm Financial Performance Index fell to 90 from 103 in August, while the Farm Capital Investment Index dropped 6 points to 39.
Producer views on the broader direction of the country also deteriorated. Fewer than half of respondents said the U.S. was headed in the “right direction” in September, the first time that has happened since the question was introduced in July 2025. The share had averaged 71% during the second half of 2025 and 62% in the first half of 2026, before slipping to 51%-54% in July and August.
Despite weaker overall sentiment, producers remained relatively optimistic about farmland values. The Short-Term Farmland Value Expectations Index edged down 1 point to 126, but the Long-Term Farmland Value Expectations Index rose to a record 168. Farmers cited alternative investments, inflation and interest rates as the biggest influences on land values.
Among corn and soybean growers, 37% expect U.S. soybean exports to increase over the next five years, while 10% expect a decline. However, only about 20% said they were unconcerned about U.S. soybean competitiveness versus Brazil.
The September survey was conducted Sept. 14-18 among 400 U.S. farmers.
