U.S. Farmer Sentiment Drops to 12-Month Low in August

Farmer confidence in the U.S. economy fell to its lowest point in a year this August, marking the third consecutive monthly decline in the Purdue/CME Group Ag Economy Barometer. Producers expressed growing concern about their financial outlook, with many expecting weaker farm income in the year ahead.

The survey revealed a sharp divide between crop and livestock producers. Crop farmers reported steep pessimism, while livestock operations—especially beef producers—remain more optimistic. Record-high cattle prices, driven by the smallest U.S. cattle inventory since 1951, have boosted profitability for beef operations. In contrast, crop producers are grappling with weakened returns in 2025.

Financial concerns are a key factor, and falling crop prices are largely to blame. The USDA’s August forecast projects corn prices at $3.90 per bushel and soybeans at $10.10 per bushel for the 2025–26 season, both well below estimated break-even levels.

Rising Demand for Operating Loans

The survey also highlighted growing financial stress on farms. Twenty-two percent of producers expect to need a larger operating loan in 2026. Alarmingly, 23% of those farmers said they’ll need bigger loans because they plan to carry over unpaid debt from 2025.

“Overall, the August survey shows that U.S. farmers expect their financial performance for the coming year to drop compared to last year,” said Michael Langemeier, principal investigator of the Ag Economy Barometer and director of Purdue University’s Center for Commercial Agriculture. “The growing percentage of farmers expecting to carry over debt signals increasing financial stress in production agriculture.”