Farmer sentiment continues to weaken. The Purdue University/CME Group Ag Economy Barometer declined again in July, falling to 135, an 11-point month-over-month decline.
The July Current Conditions Index dropped 17 points to 127, while the Future Expectations Index posted a smaller decline of 7 points to 139.
Purdue University’s James Mintert said when asked about their biggest concerns for their farming operation producers noted, despite the weakness in crop prices, high input cost remains the top concern among producers chosen by 39% of respondents in July’s survey. The 2nd place concern, lower crop and livestock prices, selected by 29% of respondents.
“When we asked a similar or related question, what’s the biggest challenge to the success of their operation is over the next 5 to 10 years, producers gave us a different response,” Mintert said. “36% chose crop or livestock prices as the biggest challenge and only 17% chose cost control. Additionally, only 9% chose financial considerations suggesting that entering a period of weak returns, especially in the crop sector, producers are ending this with a relatively strong balance sheet for their farm operation.”
Mintert pointed out July’s survey was conducted just after passage of the One Big, Beautiful bill, providing some clarity with respect to Farm Bill support levels, especially the PLC and ARC prices for crops.
“And so we asked producers if they expect the farm safety net provided by U.S. farm programs in the 2025 Farm Bill will be stronger than weaker than or about the same than the previous bill,” he said. “The percentage [of participants] expecting stronger support than the previous Farm Bill was doubled, about 31%, said stronger than whereas 15% said weaker than.”
Mintert added producers were asked about the general direction of the U.S. 74% of respondents in July’s survey said the nation is headed in the right direction versus 26% who said the country is on the wrong track.
By Glenn Vaagen
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