The Purdue University/CME Group Ag Economy Barometer reported that farmer sentiment declined in June following two months of improvement. In May, the barometer reached its highest level since 2021. However, last month, it dropped 12 points to 146.

This decline was primarily due to reduced optimism about agricultural exports, with the Index of Future Expectations falling 18 points. Only 41% of farmers now expect export growth over the next five years, down from 52% in May. The percentage of farmers anticipating declines rose to 16%.

Support for free trade remained steady at 31%, which is significantly lower than the 49% from five years ago.

Regarding U.S. tariff policy, 45% of farmers in May and June said tariffs would negatively impact farm income, down from 56% earlier in the year.

The Farm Financial Performance Index dropped 5 points to 104, indicating a slightly weaker financial outlook for 2025. However, the Farm Capital Investment Index rose 5 points to 60. Twenty-four percent of producers now believe it’s a good time to invest in their operations. Still, 54% plan to reduce machinery purchases.

The survey is conducted monthly with 400 farmers nationwide. The report shows that despite June’s decline, sentiment remains stronger than a year ago.

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