Farmers kept voicing worries over farm finances as the June Purdue University/CME Group Ag Economy Barometer showed a 6-point drop in sentiment to 113. The Current Conditions Index fell to an 18-month low of 102, and the Future Expectations Index slipped 7 points. Elevated input expenses stayed the top worry, with 47% naming them the main issue for their operation, followed by low crop and livestock prices at 23%. A related query showed 42% of respondents believe high input costs are hindering better financial standings this year. The poll involved 400 farmers nationwide from June 15-19.

Further survey findings highlighted the financial pressures on producers. Only 12% of respondents said their farms were better off financially than a year ago, while just 22% expected their operations to improve over the next 12 months. Reflecting that cautious view, the Farm Capital Investment Index kept falling from the March 2026 survey to 40, its lowest level since September 2024.

When asked what limited improvement in their farm's financial situation, 42% of respondents pointed to high input costs, while low output prices at 17% ranked second. Weather risk (14%), policy uncertainty (11%), labor and equipment concerns (9%), and debt or financial pressure (8%) completed the list.

"While high input costs remain the primary constraint on farm financial performance, producers are continuing to make decisions in a broader environment shaped by technology adoption, trade expectations and long-term land value outlook," said Michael Langemeier, the barometer's principal investigator and director of Purdue's Center for Commercial Agriculture.

This month's survey included two questions on the use of AI and other data-driven tools in agriculture. When asked about potential benefits, 23% of respondents cited increased production as the primary advantage, 14% cited reduced labor needs, and 11% cited reduced risk or uncertainty. However, a majority of respondents (52%) said they did not see a meaningful benefit from these tools.

Respondents also expressed skepticism about the practical use of data-driven tools. Approximately 63% said AI-generated recommendations would be sometimes difficult to follow, while 22% said they would often be difficult to follow.

Producers expressed generally positive expectations for agricultural exports over the next five years and showed strong support for free trade. While 9% of respondents expected agricultural exports to decline, 43% expected exports to increase over the next five years. Eighty-five percent agreed or strongly agreed with the statement that free trade benefits agriculture and most other American industries.

Beyond trade expectations, longer-term outlooks for the farm sector weakened compared with a year ago. The percentage of respondents expecting "good times" over the next five years fell to 32% in June, 17 percentage points lower than in the June 2025 survey. Expectations also continued to vary notably by sector, with 25% of respondents expecting good times for crop producers compared with 68% for livestock producers.

Short-term farmland value expectations declined in June, with the index falling from 130 in May to 124. In contrast, long-term expectations remained strong, rising to 166 and tying the record high. Respondents cited alternative investments, net farm income and inflation as the factors with the greatest influence on farmland values.

Since July 2025, producers have been asked whether they think the U.S. is headed in the "right direction" or on the "wrong track." After averaging 71% during the final six months of 2025, the percentage of producers reporting the U.S. is headed in the "right direction" was 52% in May and 53% in June.

About the Purdue University Center for Commercial Agriculture

The Center for Commercial Agriculture was founded in 2011 to deliver professional development and educational programs for farmers. Housed within Purdue University's Department of Agricultural Economics, the center's faculty and staff develop and execute research and educational programs that address the different needs of managing in today's business environment.

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, empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it 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 top 10 public universities in the United States, Purdue discovers, disseminates and deploys knowledge with a quality and at a scale second to none. More than 106,000 students study at Purdue across multiple campuses, locations and modalities, including more than 57,000 at our main campus locations in West Lafayette and Indianapolis. Committed to affordability and accessibility, Purdue's main campus has frozen tuition 14 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap, including its integrated, comprehensive Indianapolis urban expansion; the Mitch Daniels School of Business; Purdue Computes; and the One Health initiative.

Source: Michael Langemeier, 765-494-9557

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SOURCE CME Group