The Current Conditions Index jumped 20 points to 122, and the Future Expectations Index gained 11 points to 129. Producers' primary worry continues to be high input costs, cited by 46 percent as their main operational challenge. Looking ahead five to ten years, 30 percent pointed to crop or livestock prices as the top hurdle. The poll included 405 farmers nationwide conducted July 13-17.

The Farm Capital Investment Index also halted its three-month slide, reaching 50 in July. Although most producers noted no improvement in their current financial standing compared to last year, they showed more optimism for the coming period. Thirteen percent said they were better off financially than a year earlier, and nearly one-quarter anticipate gains in their operation's financial position over the next 12 months.

Besides crop and livestock prices, producers listed farm transition at 17 percent and cost control at 16 percent as the next biggest long-term concerns over five to ten years. Other key issues included financial matters and weather at 13 percent each, trade at 7 percent, and government policy at 3 percent. These areas influenced educational priorities, with marketing ranking as the leading risk management training need for 44 percent of respondents, well ahead of financial and strategic risk topics.

Stronger crop prices during the survey window likely helped lift both overall sentiment and the Farm Capital Investment Index, noted Michael Langemeier, the barometer's lead researcher and director of Purdue's Center for Commercial Agriculture. At the same time, producers keep grappling with elevated input costs and questions around future crop and livestock prices. The keen interest in marketing education highlights the demand for tools to manage a more unpredictable pricing landscape.

As cash rent talks approach, most corn, soybean, wheat and cotton growers in this month's survey expect rental rates to hold steady in 2027. Nineteen percent foresee cash rents rising, versus 7 percent who predict a drop. Among those expecting increases, gains of 5 percent to 10 percent were the most common outlook.

The July survey also examined views on agricultural exports and overseas markets. Producers remain cautiously positive about U.S. agricultural exports, with 42 percent anticipating growth over the next five years compared to 13 percent who foresee a decline. A majority, 56 percent, think new foreign export markets for U.S. farm goods are likely to emerge in that timeframe, though this view has eased from 64 percent last July.

Producers were somewhat less upbeat about farmland values in July. The Short-Term Farmland Value Expectations Index slipped 6 points to 118, while the long-term index dropped 14 points to 152. Respondents named alternative investments, net farm income and interest rates as the main factors they expect to shape farmland values.

Since July 2025, producers have been asked if they see the U.S. moving in the right direction or on the wrong track. Fifty-four percent said they believe the country is headed in the right direction, up slightly from 53 percent in June and 52 percent in May, yet below the 71 percent average from the final six months of 2025.

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 research and educational initiatives that tackle the varied demands of managing in today's business climate.

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About Purdue University

Purdue University is a research institution ranked among the top 10 public universities in the United States. More than 106,000 students study at Purdue across multiple campuses, including more than 57,000 at our main campus locations in West Lafayette and Indianapolis. As a land-grant university committed to affordability and accessibility, Purdue's main campus has frozen tuition 14 years in a row, enabling more students than ever to graduate debt-free.

Source: Michael Langemeier, 765-494-9557

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SOURCE CME Group