The August Purdue University/CME Group Ag Economy Barometer rose nine points as producers reported greater confidence in future finances and agricultural exports.
U.S. farmer sentiment improved in August, with producers expecting their operations to be better off financially a year from now for the first time since June 2025.
The Purdue University/CME Group Ag Economy Barometer rose from 126 in July to 135 in August. The Index of Future Expectations increased by 11 points, while the Index of Current Conditions gained one point.
Optimism about agricultural exports over the next five years also increased. The export expectations index reached 140, its highest level since December 2025.
The survey was conducted among 402 U.S. agricultural producers from Aug. 10-14, according to a press release.
Financial Optimism Rises, but Investment Weakens
The Farm Financial Performance Index rose to 103 in August, up from 90 at the beginning of the year. The increase indicates that more producers expect their farms’ financial performance to improve over the next 12 months.
However, that confidence did not translate into stronger capital investment plans. The Farm Capital Investment Index fell five points to 45.
Higher input costs remained producers’ leading concern in August.
Farmers Identify Strategic Planning as a Priority
The August survey included three questions examining the skills farm operators consider most valuable, most in need of improvement and most likely to benefit from artificial intelligence.
When asked which skill generates the greatest return on investment for their operation, 29% selected production skills. Financial management and analysis followed at 23%, while 22% chose strategic planning.
Strategic planning topped the list of skills producers believed their farms most needed to improve, cited by 28% of respondents. Selling products ranked second at 20%, followed by buying inputs at 19%.
Producers also saw strategic planning as the skill most likely to improve through AI. Thirty-two per cent selected strategic planning, followed by financial management and analysis at 28% and production skills at 18%.
“Producers are looking beyond the day-to-day management of their operations and thinking more strategically about the skills they need to succeed,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture. “The emphasis on strategic planning, both as an area for improvement and as a potential application for artificial intelligence, suggests producers see opportunities to use new tools to strengthen decision-making.”
Farmland Expectations Strengthen
The Short-Term Farmland Value Expectations Index increased eight points to 127 in August.
Respondents identified alternative investments, interest rates and inflation as the three leading factors influencing farmland values.
When asked to evaluate farmland as an investment, 65% described it as a good investment. Another 17% rated it as a medium investment, while 18% considered it a poor investment.
Views on the Country’s Direction
Since July 2025, the barometer has asked producers whether they believe the United States is moving in the “right direction” or is on the “wrong track.”
An average of 71% said the country was moving in the right direction during the final six months of 2025. That figure declined to 62% during the first quarter of 2026.
Since April, the percentage choosing the right direction has ranged from 51% to 57%. In August, 51% of respondents said the country was moving in the right direction.
