{"id":15034,"date":"2025-10-07T09:20:00","date_gmt":"2025-10-07T13:20:00","guid":{"rendered":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/?p=15034"},"modified":"2025-10-07T09:32:24","modified_gmt":"2025-10-07T13:32:24","slug":"media-farmers-say-current-conditions-on-u-s-farms-are-weakening","status":"publish","type":"post","link":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-farmers-say-current-conditions-on-u-s-farms-are-weakening\/","title":{"rendered":"Farmers say current conditions on U.S. farms are weakening\u00a0\u00a0"},"content":{"rendered":"\n

WEST LAFAYETTE, Ind. \u2014 Farmer sentiment held steady in September, as the\u00a0Purdue University\/CME Group Ag Economy Barometer<\/a>rose just 1 point to a reading of 126. However, there was a shift in producers\u2019 perceptions of current conditions and their expectations for the future. The Index of Current Conditions fell 7 points to 122, while the Index of Future Expectations climbed 5 points to 128. The survey was conducted following the U.S. Department of Agriculture\u2019s release of the September Crop Production report and the World Agricultural Supply and Demand Estimates\u00a0<\/em>report. These reflected farmers\u2019 concerns about current conditions, particularly over record-high corn and soybean yields, which were pressuring crop prices. At the same time, optimism about the future was supported by farmers\u2019 belief that U.S. policy is \u201cheaded in the right direction\u201d and by expectations that potential government support, like the 2019 Market Facilitation Program (MFP), will provide payments to farmers in compensation for lower commodity prices. The barometer survey took place Sept. 15-19.<\/p>\n\n\n\n

\"Farmers

Farmers say current conditions on U.S. farms are weakening. (Purdue University\/CME Group Ag Economy Barometer\/James Mintert)<\/p><\/div>\n

The September Farm Financial Performance Index dropped 3 points to a reading of 88, marking the third consecutive month farmers have lowered their expectations for 2025 compared with 2024. Consistent with this more cautious outlook, fewer producers said now is a good time to make major investments in their operations, pushing the Farm Capital Investment Index down 8 points to 53.<\/p>\n\n\n\n

Producers\u2019 short-term outlook for farmland values weakened for the fourth month in a row, as the Short-Term Farmland Values Expectations Index fell 6 points to 106. The index now stands 18 points below its 2025 peak from May of 124. The shift was driven by fewer producers expecting farmland values to rise and more anticipating farmland values to remain about the same, with 58% of respondents saying they expect farmland values to hold steady over the next year, up from 54% in August.<\/p>\n

Policy changes appear to continue to shape farmers\u2019 perspectives in September. A substantial majority (71%) of farmers in this month\u2019s survey reported that things in the U.S. are \u201cheaded in the right direction,\u201d similar to the July and August survey results. However, confidence in the long-run impact of tariffs has weakened. Just over half of respondents (51%) said they expect tariffs to strengthen the U.S. agricultural economy, down from 63% of June\u2019s survey respondents and 70% of respondents in both the April and May surveys who said they expect the use of tariffs to have a long-term positive impact. At the same time, 30% now believe tariffs will weaken the agricultural economy, and 19% are uncertain \u2014 more than double the number of respondents who were uncertain in the spring.<\/p>\n

Amidst growing concerns about tariffs, most farmers expect potential government support to help cushion the impact. In September, 83% of producers said a program similar to the 2019 MFP is likely if a trade war drives commodity prices lower, with 62% calling it \u201cvery likely\u201d and another 21% saying it is \u201clikely.\u201d<\/p>\n

Each September since 2021, the Ag Economy Barometer survey has included several questions focused on cover crop usage by corn and soybean farmers, and just over half (53%) of farmers surveyed this month reported using cover crops on at least some of their acreage, a share that has ranged between 52% and 57% over the past five years. Among cover crop users, 40% said they adopted the practice within the last five years, while 9% have used cover crops for more than two decades. Survey trends also point to broader adoption across acreage: This year, 57% of cover crop users planted them on 26-50% of their acres, compared to only 25% in 2021 who reported planting cover crops on more than one-fourth of their acreage.<\/p>\n

\u201cHigh production costs and weak crop prices are pressuring farm incomes on U.S. crop farms,\u201d said Michael Langemeier<\/a>, the barometer\u2019s principal investigator and director of Purdue\u2019s Center for Commercial Agriculture<\/a>. \u201cA large majority of U.S. farmers expect government support to bolster farm incomes if crop prices remain weak.\u201d<\/p>\n\n\n

About the Purdue University Center for Commercial Agriculture<\/strong><\/p>\n

The Center for Commercial Agriculture<\/a> was founded in 2011 to provide professional development and educational programs for farmers. Housed within Purdue University\u2019s Department of Agricultural Economics, the center\u2019s faculty and staff develop and execute research and educational programs that address the different needs of managing in today\u2019s business environment.<\/p>\n\n\n

About CME Group<\/strong><\/p>\n\n\n\n

As the world\u2019s leading derivatives marketplace, CME Group<\/a> enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data \u2014 empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates<\/a>, equity indexes<\/a>, foreign exchange<\/a>, energy<\/a>, agricultural products<\/a> and metals<\/a>. The company offers futures and options on futures trading through the CME Globex<\/a> platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world\u2019s leading central counterparty clearing providers, CME Clearing.<\/p>\n\n\n\n

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC (\u201cS&P DJI\u201d). \u201cS&P\u00ae\u201d, \u201cS&P 500\u00ae\u201d, \u201cSPY\u00ae\u201d, \u201cSPX\u00ae\u201d, US 500 and The 500 are trademarks of Standard & Poor\u2019s Financial Services LLC; Dow Jones\u00ae, DJIA\u00ae and Dow Jones Industrial Average are service and\/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.<\/p>\n\n\n\n

About Purdue University<\/strong> <\/p>\n\n\n\n

Purdue University is a public research university leading with excellence at scale. Ranked among top 10 public universities in the United States, Purdue discovers, disseminates and deploys knowledge with a quality and at a scale second to none. More than 107,000 students study at Purdue across multiple campuses, locations and modalities, including more than 58,000 at our main campus in West Lafayette and Indianapolis. Committed to affordability and accessibility, Purdue\u2019s main campus has frozen tuition 14 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap \u2014 including its comprehensive urban expansion, the Mitch Daniels School of Business, Purdue Computes and the One Health initiative \u2014 at https:\/\/www.purdue.edu\/president\/strategic-initiatives<\/a>.<\/p>\n\n\n\n

Sources and Notes block:<\/strong>
Source:<\/strong> Michael Langemeier, mlangeme@purdue.edu<\/a>, 765-494-9557<\/p>\n\n\n\n

Media Contacts:<\/strong>
Aissa Good, Purdue University, aissa@purdue.edu<\/a>, 765-496-3884
Dana Schmidt, CME Group, dana.schmidt@cmegroup.com<\/a>, 312-872-5443<\/p>\n\n\n\n

Author:<\/strong> Morgan French
Release date: <\/strong>October 7, 2025 at 9:30 a.m. ET<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"

WEST LAFAYETTE, Ind. \u2014 Farmer sentiment held steady in September, as the\u00a0Purdue University\/CME Group Ag Economy Barometerrose just 1 point to a reading of 126. However, there was a shift in producers\u2019 perceptions of current conditions and their expectations for the future. The Index of Current Conditions fell 7 points to 122, while the Index…<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[],"class_list":["post-15034","post","type-post","status-publish","format-standard","hentry","category-media"],"acf":[],"yoast_head":"\nFarmers say current conditions on U.S. farms are weakening\u00a0\u00a0<\/title>\n<meta name=\"description\" content=\"Farmer sentiment improved in April as producers expressed more optimism about current and future conditions on their farms. 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