Livestock Optimism Lifts Farmer Sentiment in October

Beef Sector Strength Offsets Crop Producer Financial Concerns

U.S. farmer sentiment saw a modest rise in October, driven largely by optimism in the livestock sector. The Purdue University/CME Group Ag Economy Barometer climbed three points to a reading of 129, supported by an eight-point gain in the Index of Current Conditions, while the Index of Future Expectations remained nearly unchanged at 129. 

The survey, conducted from October 13 to 17, revealed a contrast between crop and livestock producers. Livestock farmers reported strong confidence in their operations, supported by record-high beef profitability, while crop producers expressed growing concern over shrinking profit margins. 

The Farm Financial Performance Index dropped to 78, down ten points from September, signaling reduced expectations for farm income compared to earlier in the year.  

Crop producers expected their performance to fall below last year’s results, while livestock producers anticipated steady returns. However, the Farm Capital Investment Index rose nine points to 62, reflecting stronger investment sentiment among livestock farmers. 

When asked how they would use a potential USDA payment for low commodity prices, 53% of respondents said they would pay down debt, 25% would boost working capital, and smaller groups would invest in equipment or family expenses. 

Farmland value expectations also improved, with the Short-Term Farmland Value Expectations Index up seven points to 113. About 30% of farmers expect land values to rise in the next year, compared to 24% in September. 

According to Purdue’s Michael Langemeier, livestock producers remain positive, while crop growers are reassessing management strategies for 2026, such as reducing fertilizer use and adopting lower-cost seed varieties.  

Despite policy uncertainty, nearly 70% of producers believe the agricultural economy is headed in the right direction, showing resilience amid shifting market pressures.