US farmer sentiment slipped again in August, dragged down by souring expectations about the future.
The latest monthly Purdue University–CME Group Ag Economy Barometer – released Tuesday – came in at 125 points, down 10 points from July. The barometer is based on a survey of 400 producers across the country.
The August survey noted a marked disparity in optimism between livestock and crop producers, with the crop sector struggling mightily amid continued low prices. On the other hand, beef cattle operations especially are experiencing record profitability as the smallest cattle inventory since 1951 has pushed cattle prices to record levels.
On the crop side, the barometer uncovered increasingly dire financial circumstances. Every January, the barometer survey includes questions on farm operating loans, but given rising concerns about farm income in 2025, the same questions were added to the August survey. The results underscored farmers’ financial stress.
Twenty-two percent of respondents said they expect their 2026 operating loan to be larger than in 2025, up from 18% who expected bigger loans this year compared to last. More troubling, nearly one-quarter of those anticipating larger loans — 23% — cited the need to carry over unpaid operating debt from 2025. That figure highlights a steady worsening of financial conditions, up from 17% a year earlier and just 5% in January 2023.
Conducted August 11–15, 2025, the August survey came at a time when many farms are struggling to manage costs while facing uncertain revenues. Higher debt loads, combined with reduced profitability in crop sectors, are leaving more operations reliant on expanded loans, raising concerns about the sector’s resilience if conditions deteriorate further.
