Farmer sentiment rebounded in July after three consecutive months of declines as stronger corn and soybean prices improved producers' outlook. The Purdue University/CME Group Ag Economy Barometer rose from 113 to 126, with both current conditions and future expectations improving. Even with the rebound, producers remain concerned about profitability, with high input costs and crop and livestock prices continuing to weigh on long-term expectations.

Only 13% of respondents indicated that their farm operations were better off financially in July than they had been a year ago. However, looking ahead to the next 12 months, 23% of respondents expect their farms to be better off financially a year from now, compared with 24% who expect their farms to be worse off. The Farm Capital Investment Index increased by 10 points to 50, its highest level since March.

This month’s survey asked farmers about their biggest challenge to the success of their operation over the next five to 10 years. Crop or livestock prices were selected by 30%, followed by farm transition at 17%, cost control at 16%, financial considerations and weather at 13%, trade at 7% and government policy at 3% (see Figure 4). Consistent with these results, when farmers were asked about their most crucial risk management education need, the most common response was marketing, selected by 44% of respondents. Financial risk at 17% and strategic risk at 14% were distant second and third choices.

Since July 2025, producers have been asked whether they think the U.S. is headed in the “right direction” or on the “wrong track.” After averaging 71% during the last six months of 2025, the percentage of producers who said the U.S. was headed in the “right direction” was 54% in July, compared with 53% in June and 52% in May.