Business
Farmer sentiment drops sharply at start of 2026 as economic concerns increase
Farmer sentiment weakened sharply in January, as the Purdue University/CME Group Ag Economy Barometer fell 23 points from December to a reading of 113. The decline reflected growing pessimism about both current conditions and the future outlook for U.S. agriculture; the Current Conditions Index dropped 19 points to 109, while the Future Expectations Index fell 25 points to 115. The largest shift was in producers' long-term outlook for U.S. agriculture, with the index that measures expectations f
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[{"type":"text","content":"WEST LAFAYETTE, Ind., Feb. 3, 2026 /PRNewswire/ -- Farmer sentiment weakened sharply in January, as the Purdue University/CME Group Ag Economy Barometer fell 23 points from December to a reading of 113. The decline reflected growing pessimism about both current conditions and the future outlook for U.S. agriculture; the Current Conditions Index dropped 19 points to 109, while the Future Expectations Index fell 25 points to 115. The largest shift was in producers' long-term outlook for U.S. agriculture, with the index that measures expectations for widespread good and bad times over the next five years falling to its lowest level since September 2024. Producers also expressed greater concern about agricultural exports than last month. The survey was conducted Jan. 12-16, coinciding with the U.S. Department of Agriculture's release of the World Agricultural Supply and Demand Estimates report on Jan. 12.","length":927,"tagName":"p"},{"type":"text","content":"Producers reported worsening farm financial conditions compared with a year earlier. Half of the farmers surveyed indicated that their operations were worse off than a year earlier. Looking ahead to the next 12 months, more producers expect conditions to worsen than to improve. Thirty percent of respondents anticipate weaker financial performance in the coming year, compared with 20% who expect improvement. Reflecting this more cautious outlook, the Farm Capital Investment Index fell 11 points in January to 47, its lowest level since October 2024. Just 4% of producers said they plan to increase farm machinery purchases over the next year.","length":646,"tagName":"p"},{"type":"text","content":""What stands out this month is the growing number of producers who report that higher operating-loan needs stem from carrying over unpaid debt from the previous year," said Michael Langemeier, the barometer's principal investigator and director of Purdue's Center for Commercial Agriculture. "That points to increasing financial pressure heading into the year ahead."","length":395,"tagName":"p"},{"type":"text","content":"Since 2020, each January barometer survey has included questions about farmers' operating loans for the upcoming year. Twenty-one percent of respondents said they expect to have a larger operating loan compared with a year earlier...