Farmer sentiment dropped again in May as the Purdue University-CME Group Ag Economy Barometer (AEB) Index declined from 121 points in April to 119. The Current Conditions Index fell by 8 points, while the Future Expectations Index increased by 1 point. This month’s Current Conditions Index was 21 points below last year’s December index, reaching its lowest level since December 2024.

The percentage of respondents who listed high input costs as their biggest concern was 51% in May, reaching a new high. In a related question, 46% of respondents indicated that high input costs are limiting improvements in their financial position this year. The percentage of respondents who think the U.S. is headed in the “right direction” declined from 57% in April to 52% in May, the lowest percentage sincethis question started being asked in July 2025. The May barometer survey was conducted among 400 farmers across the country from May 11-15, 2026.

Only 14% of respondents indicated that their farm operations were better off in May than they had been a year ago. Looking ahead to the next 12 months, 22% of respondents expect their farm to be better off financially a year from now. The Farm Capital Investment Index fell 3 points to 41, its lowest level since September 2024, indicating a decline in willingness to make large investments.