The September Purdue University–CME Group Ag Economy Barometer reports that U.S. farmers’ perceptions of the current conditions on their farms weaken, with the Index of Current Conditions fell seven points to 122. This reflects concerns about record-high corn and soybean yields driving down prices.

The Farm Financial Performance Index dropped to 88, marking the third straight month producers expected weaker profits for 2025 than 2024. Likewise, fewer farmers see it as a good time for capital investments, pushing the Farm Capital Investment Index down to 53. Sentiment about short-term farmland values also declined for the fourth consecutive month. More producers expect values to remain stable rather than rise.

Producers were more hopeful for long-term conditions. The Index of Future Expectations rose five points to 128 amid optimism about national policy and potential government support programs. While 71% of farmers believe the U.S. is “headed in the right direction,” optimism about tariffs has waned.

Only 51% expect tariffs to strengthen the farm economy. This is down sharply from earlier in the year. Meanwhile, expectations for a new Market Facilitation Program remain strong. Almost 83% of respondents view such aid as likely if trade tensions lower prices.

Cover crop adoption remains steady at about 53%. Farmers are increasingly using them on larger portions of acreage.

Read more from the Purdue University–CME Group Ag Economy Barometer here.