US Farmer Sentiment Rebounds as Corn and Soybean Prices Rise

The Purdue University-CME Group Ag Economy Barometer (AEB) Index rebounded in July, ending three consecutive months of decline. The index increased from 113 points in June to 126 points in July, with both subindices also increasing: the Index of Current Conditions rose by 20 points, while the Index of Future Expectations increased by 11 points.

This improvement came as corn and soybean prices increased from mid-June to mid-July. However, high input costs continue to limit expectations for better farm financial performance, with 46% of respondents listing them as their biggest concern.

Looking ahead, 23% of respondents expect their farms to be better off financially in the next 12 months, compared to 24% who expect them to be worse off. The Farm Capital Investment Index increased by 10 points to 50, its highest level since March.