Farmer Sentiment Drops as Input Costs Climb to Record High

U.S. farmers are increasingly worried about rising input costs, which have become their top concern in September. A survey by Purdue University and CME Group found that 52% of respondents cited higher input costs as their primary issue, a record high. The overall sentiment index dropped from 135 in August to 123 in September, driven by an 18-point decline in the Index of Current Conditions.

The survey, conducted among 400 farmers nationwide from September 14-18, revealed growing financial anxieties. The Farm Financial Performance Index fell sharply from 103 in August to 90 in September, while the Farm Capital Investment Index declined 6 points to 39. Optimism about future financial prospects also waned, with the Index of Future Expectations dropping 9 points. Thirty-five percent of producers expected their financial position to worsen in the next year, compared to just 22% who anticipated improvement.

Despite these concerns, farmland value expectations showed a positive trend. The Long-Term Farmland Value Expectations Index rose 5 points to a record 168, while the Short-Term Farmland Value Expectations Index fell slightly by 1 point to 126. Respondents identified alternative investments, inflation, and interest rates as key factors influencing farmland values.

The survey also explored specific agricultural practices and expectations. Seventy-three percent of respondents expected cash rents to remain unchanged in 2027, with 47% of those anticipating a modest increase of 0% to 5%. Forty-six percent of farmers reported planting cover crops, with a third doing so for over a decade. Regarding soybean exports, 37% of corn and soybean producers expected an increase over the next five years, while 10% anticipated a decline.

Producer views on the U.S. economy also weakened. The share of respondents who believed the country was headed in the right direction dropped below 50% in September, marking the first time since July 2025 that fewer than half of surveyed producers expressed optimism.