Farmer sentiment weakened again in June as the Purdue University-CME Group Ag Economy Barometer fell six points to 113, marking the second straight monthly decline. The Index of Current Conditions dropped to its lowest level since December 2024, while the Future Expectations Index also moved lower as producers remained cautious about the year ahead. High input costs continue to dominate producers' concerns. Forty-seven percent of farmers surveyed identified rising input expenses as their biggest challenge, while 42 percent said those costs are preventing improvements in their farm's financial position.
Low crop and livestock prices ranked a distant second. Only 12 percent of farmers said their operations are in better financial shape than a year ago, while 22 percent expect conditions to improve over the next 12 months. The Farm Capital Investment Index also slipped to its lowest level since September 2024, reflecting continued caution about major purchases as producers deal with tight margins and ongoing economic uncertainty.
-NAFB