WEST LAFAYETTE, IN – Farmer sentiment weakened sharply in September as producers grew more concerned about input costs and farm finances, according to the Purdue University-CME Group Ag Economy Barometer.
The overall index fell 12 points from August to 123. The Index of Current Conditions dropped 18 points, while Future Expectations declined nine. Only 22% of respondents expect their farms to be better off financially a year from now, compared with 35% expecting worse conditions.
Higher input costs were the top concern for a record 52% of respondents, and 54% said input expenses were the main factor preventing financial improvement. The Farm Financial Performance Index fell to 90, while the Farm Capital Investment Index dropped six points to 39.
Among corn and soybean producers, 73% expect cash rents to remain steady in 2027. About 46% currently plant cover crops, while only 19.9% said they were not concerned about U.S. soybean competitiveness with Brazil.
Long-term farmland expectations remained strong, with that index reaching a record 168.
Farm-Level Takeaway: Rising input costs are weighing on producer confidence even as farmland values remain a source of long-term optimism.