US Agricultural Sentiment Fell as Input Costs Raised Concern
The Purdue University-CME Group Ag Economy Barometer recorded a reading of 123 in September, marking a decline in agricultural sentiment among commercial farmers. Survey responses pointed to higher expenses and tighter margins in both crop and livestock operations, with producers expressing greater caution about near-term profitability and capital investment.
Input costs were the leading operational concern for 52% of respondents, the highest share recorded in the survey. Farmers cited expenses for feed, fertiliser, chemicals, diesel and equipment as pressures on working capital. The survey also found that these cost concerns had become more prominent than traditional worries about commodity prices and weather.
Views on the direction of the agricultural sector also weakened. The proportion of respondents who said the sector was moving in the right direction fell below 50% in September. That measure had averaged 71% in late 2025 and 62% in early 2026, before reaching between 51% and 54% in July and August.
The survey linked the lower confidence to concerns about federal regulatory burdens, economic conditions and the financial effect of higher operating costs. Producers reported smaller margins between farm revenue and expenditure, leaving less room to absorb unexpected market or supply-chain disruptions.
Expectations for agricultural land and rental markets were more stable. Looking towards the 2027 production cycle, 73% of crop and livestock producers expected cash rental rates to remain unchanged. Of the 22% who anticipated higher rents, almost half forecast an increase of between 0% and 5%.
Reported adoption of conservation practices was also steady. Nearly half of the surveyed producers said they were planting cover crops, a practice associated in the survey with the management of soil health and agronomic efficiency. The findings were released as producers assessed their budgets for the remainder of 2026 and prepared for the following production cycle.
