High input costs dominate farmer concerns as sentiment declines nationwide
Farmer sentiment in the United States declined slightly in May, according to a survey conducted by Michael Langemeier and Joana Colussi from the Purdue Center for Commercial Agriculture. The Ag Economy Barometer fell from 121 in April to 119, reflecting weaker confidence among farmers.
The drop in sentiment was mainly due to an 8-point decrease in the Current Conditions Index, which measures farmers’ views on present economic conditions. This index reached its lowest level since December 2024. However, the Future Expectations Index showed a small improvement, increasing by one point.
High input costs continued to be the biggest concern for farmers. Around 51% of respondents identified rising expenses such as fuel, seed, and fertilizer as their top issue. Additionally, 46% said these high costs were limiting their ability to improve financial performance this year.
The survey, conducted between May 11 and May 15, 2026, included 400 farmers from across the country. It also highlighted other challenges affecting farm operations. Weather risks were the second-most cited concern at 19%, followed by low output prices at 14%. Labor and equipment issues accounted for 9%, while debt and financial pressure were mentioned by 5% of participants.
Farmers’ outlook on national direction also weakened. The percentage of respondents who believed the United States was moving in the “right direction” declined from 57% in April to 52% in May, marking the lowest level since the question was introduced in July 2025.
Long-term expectations showed mixed trends. Only 37% of respondents expected favorable conditions over the next five years, which is significantly lower than the previous year. There was also a clear difference between sectors, with livestock producers showing more optimism than crop producers.
Despite current challenges, farmers expressed relatively stronger confidence in both short-term and long-term land values. Overall, the survey highlights growing financial pressures while indicating cautious optimism about the future of agriculture.
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