US Farmer Sentiment Hits 12 Month Low in August

By Ryan Hanrahan

United States farmer sentiment hit a 12 month low in August as producers expressed less optimism about the future and reported weak financial expectations for their farms in the coming year. It was the third month in a row that the barometer has declined.

“Sentiment differed widely among producers depending on whether their farm is primarily a crop operation or a livestock operation,” the Purdue/CME Group Ag Economy Barometer said. “Responses from crop producers this month were much less optimistic than those from livestock producers, which indicates the disparity in profitability between crop and livestock enterprises. Beef cattle operations in particular are experiencing record profitability as the smallest cattle inventory since 1951 has pushed cattle prices to record levels. This stands in sharp contrast to returns for crop production which have weakened in 2025.”

World Grain’s Arvin Donley reported that “farmers again reported weak financial expectations for their farms in the coming year. As in July, the Farm Financial Performance Index remained below 100. The reading of 91 barely changed from July’s index value.”

“Crop prices that stand below the cost of production for many farms help explain why more farmers expect weaker incomes for the coming year. The US Department of Agriculture (USDA) August Crop Production and World Agricultural Supply and Demand Estimates forecasted a 2025-26 season average corn price of $3.90 per bushel and a soybean price of $10.10 per bushel,” Donley reported. “Both estimates fall well below estimated break-even levels for US farmers. Despite the weak income outlook, the Farm Capital Investment Index improved 8 points from July to 61. Livestock producers had a notably more optimistic outlook in August than crop producers, which helped push the index higher.”