/PRNewswire/ -- Producer sentiment fell modestly in May as the Purdue University/CME Group Ag Economy Barometer decreased to 119 from 121 in April. May's findings showed increasing worries regarding climbing input expenses and monetary challenges, setting new records for the study. Although the Future Expectations Index rose by one point, the Current Conditions Index declined eight points from April to reach its lowest mark since December 2024. High input costs were named by 51 percent of respondents as their chief concern, hitting an all-time peak. In addition, 46 percent noted that elevated input expenses are restricting progress in their financial standing this year. The poll drew responses from 400 producers nationwide during May 11-15.

Financial perspectives stayed guarded in May. Just 14 percent of those surveyed indicated their farm operations were in better financial shape than a year earlier, while 22 percent anticipated conditions would improve over the coming 12 months. The Farm Capital Investment Index slipped three points to 41, its lowest level since September 2024, pointing to less inclination toward major expenditures.

"The ongoing burden of high input costs proves particularly difficult when many operators already face narrower margins," said Michael Langemeier, the barometer's lead investigator and director of Purdue's Center for Commercial Agriculture. "When producers perceive fewer chances to strengthen their financial position even with solid management, it significantly affects views of present conditions and spending plans."

Following April's example, this month's poll posed questions about the effects of recent developments on net farm income and corn break-even prices for 2026. Roughly two-thirds of respondents anticipated a reduction in their farm's net income for 2026. Among those who grew corn in 2025, nearly half expected corn break-even prices to climb by up to 6 percent, while 30 percent foresaw increases of 10 percent or higher.

Labor supply and technology use received attention in May as well. About 39 percent of respondents employ nonfamily workers for farm tasks. Of that group, roughly 44 percent reported some or significant challenges in hiring this year. Participants were also queried on whether artificial intelligence tools might improve their labor and equipment circumstances. Around 59 percent felt AI would not help their situation, 37 percent believed it would assist somewhat, and 4 percent thought it would help substantially.

Farmland value expectations improved this month even as sentiment on current conditions weakened. The Short-Term Farmland Value Expectations Index advanced from 121 in April to 130 in May, while the long-term index moved from 155 to 160. Producers pointed to alternative investments, interest rates, and net farm income as the top three factors shaping farmland values.

Since July 2025, respondents have been asked if they view the U.S. as moving in the "right direction" or on the "wrong track." After averaging 71 percent over the latter half of 2025, the share believing the nation is headed in the "right direction" has continued to drop, reaching 52 percent in May and the lowest level since the question began.

Closing the May survey, producers maintained notably varied outlooks for crop and livestock sectors. Roughly 31 percent of respondents expected favorable financial times for crop producers over the next five years, compared with 68 percent who anticipated good times for livestock producers.

About the Purdue University Center for Commercial Agriculture

The Center for Commercial Agriculture was established in 2011 to deliver professional development and educational programs for farmers. Located within Purdue University's Department of Agricultural Economics, the center's faculty and staff create and implement research and educational initiatives that address the varied demands of managing in today's business climate.

About CME Group

As the world's leading derivatives marketplace, CME Group enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data, helping market participants worldwide manage risk and seize opportunities efficiently. CME Group exchanges provide the broadest selection of global benchmark products across major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals. The company facilitates futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. It also operates one of the world's leading central counterparty clearing providers, CME Clearing.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P", "S&P 500", "SPY", "SPX", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones, DJIA and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

About Purdue University

Purdue University is a public research university leading with excellence at scale. Ranked among the top 10 public universities in the United States, Purdue discovers, disseminates and deploys knowledge with unmatched quality and scale. More than 106,000 students study at Purdue across multiple campuses, locations and modalities, including more than 57,000 at main campus locations in West Lafayette and Indianapolis. Committed to affordability and accessibility, Purdue's main campus has frozen tuition for 14 consecutive years. See how Purdue continues its pursuit of the next giant leap, including its integrated Indianapolis urban expansion, the Mitch Daniels School of Business, Purdue Computes, and the One Health initiative.

Source: Michael Langemeier, 765-494-9557

CME-G

SOURCE CME Group