Aerial Corn Soybeans SunsetFarmer sentiment weakened in August. This marks the third consecutive monthly decline, according to the Purdue University/CME Group Ag Economy Barometer. The index dropped 10 points to 125. The decrease was driven largely by reduced confidence in the future.

The Index of Future Expectations fell 16 points to 123. This is its lowest level since September 2024. However, the Current Conditions Index edged up slightly to 129. Optimism varied by sector.

Livestock producers, particularly beef cattle operations, remain profitable amid record-high cattle prices. Crop producers face returns below break-even. USDA’s August forecasts underscored these challenges, projecting 2025-26 average corn and soybean prices of $3.90 and $10.10 per bushel. These are both below cost of production for many farms.

The Farm Financial Performance Index held at a weak 91. This reflects income concerns. However, the Farm Capital Investment Index improved to 61, supported by livestock optimism.

Farmland expectations softened slightly, with the index slipping to 112. Most producers still expect values and cash rents to remain steady or rise. Notably, more farmers anticipate larger 2026 operating loans. Nearly a quarter cited the need to carry over unpaid debt. This highlights rising financial stress across U.S. agriculture.

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