Image by Alexandrumusuc/DepositPhotos
The latest data from Purdue University and the CME Group shows that farmer sentiment declined in August 2025, marking the third consecutive month of decline. The drop reflects ongoing concerns about market volatility, production costs, and future profitability—especially among grain producers.
“Farmer sentiment as measured by Purdue University and the CME group dropped in August for the third month in a row. That model put together measures current optimism and also future expectations.”
While current sentiment remains steady, future outlooks among farmers have grown increasingly cautious.
“By the way, that futures index fell to its lowest level since early last September. Current sentiment actually changed very little from July.”
The diverging outlook between grain producers and livestock producers continues to play a major role in the overall sentiment shift. Analysts suggest this split is common and reflects the distinct market forces affecting each sector.
“There though understandably a marked difference between grain producers outlook and livestock producers outlook, something analysts say is nearly always the case.”
Despite declining optimism about the overall farm economy, farmland remains a bright spot. The short-term farmland value expectation index saw another slight dip in July, following similar moves in May and June. However, it remains above the critical benchmark of 100—indicating that farmers still expect land values to rise in the near term.
“Short term farmland value expectation index dropped slightly in July as it did in May and in June, but it does remain above 100, signaling producers expect farmland values to continue to rise.”
Additionally, the survey offers insight into expectations for cash rental rates. While input costs and market uncertainty are weighing on other areas of farming, landowners and tenants are not anticipating any major shifts in rent through at least 2026.
“In addition, the survey showed farmers expect cash farmland rental rates to remain unchanged in 2026.”
As economic pressures continue to challenge U.S. agriculture, future sentiment will depend heavily on commodity prices, trade developments, and input cost trends through the end of the year.
Audio Reporting by Mark Oppold for Southeast AgNet. A Look At Farmer Sentiment
farmer sentiment August 2025, Purdue CME Ag Economy Barometer, grain producer outlook, livestock producer sentiment, farmland value expectations, cash rental rates farmland, agricultural economic outlook, farmland rental trends, farming optimism index, farm futures index