Key facts
- Farmer sentiment in the U.S. declined in June, with the Ag Economy Barometer Index falling to 113 points.
- High input costs were cited as the top concern by 47% of farmers surveyed.
- 42% of farmers stated that high input costs are limiting improvements in their financial position.
- Only 12% of farmers reported being better off financially compared to a year ago.
- The Farm Capital Investment Index reached its lowest level since September 2024.
- A majority of farmers (52%) did not see a meaningful benefit from AI or data-driven tools.
Farmer sentiment in the United States continued to decline in June, with high input costs remaining the most significant concern, according to the Purdue University-CME Group Ag Economy Barometer. The overall index fell to 113 points from 119 in May, driven by decreases in both the Index of Current Conditions and the Index of Future Expectations.
High input costs were identified as the primary constraint by 47% of surveyed farmers, a distant lead over low crop and livestock prices, which concerned 23% of respondents. Furthermore, 42% of farmers indicated that these elevated costs are hindering their financial progress for the year.
Reflecting a cautious outlook, only 12% of farmers reported being in a better financial position than they were a year ago, and just 22% anticipate improvement over the next 12 months. The Farm Capital Investment Index also dropped to 40, its lowest point since September 2024, signaling reduced confidence in making capital expenditures.
The survey also explored attitudes toward technology and trade. While 23% of respondents saw increased production as the main benefit of AI and data-driven tools, a majority (52%) saw no meaningful benefit. Most farmers (63%) found AI-generated recommendations sometimes difficult to follow. On trade, 43% expected agricultural exports to rise over the next five years, with 85% agreeing that free trade benefits agriculture.