Farmer Sentiment Slides as Input Cost Worries Hit Record High
A September Purdue/CME Group survey found 52% of farmers citing input costs as their top concern, driving an 18-point drop in current conditions.
U.S. farmer sentiment declined sharply in September, according to the latest Purdue University/CME Group Ag Economy Barometer survey, as rising input costs weighed heavily on agricultural producers across the country. For the first time in the survey's history, more than half of respondents — 52% — identified higher input costs as their primary concern, setting a new record.
The pessimism was also reflected in a steep decline in the Index of Current Conditions, which fell 18 points compared to the prior reading. The drop signals that farmers view their present financial and operational circumstances as deteriorating, a notable shift that analysts may interpret as a leading indicator of tightening farm-sector economic activity.
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Input costs — encompassing fertilizers, fuel, seeds, and equipment — have remained persistently elevated for agricultural producers, squeezing margins even in cases where commodity prices have provided some revenue support. The record share of farmers flagging this issue suggests the pressure has become more acute and broadly felt across farm sizes and commodity types.
The Purdue University/CME Group Ag Economy Barometer is a monthly survey-based gauge of sentiment among U.S. agricultural producers. It is widely followed by commodity markets, lenders, and policymakers as a measure of confidence and financial stress within the farm economy.
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