Ag Economy Barometer improves as concerns about outlook remain
Farmer sentiment showed modest improvement in February as the Purdue University-CME Group Ag Economy Barometer increased from 113 points in January to 116. The survey results suggest that producers feel somewhat better about current farm conditions, although confidence in the outlook continues to weaken.
The February survey was conducted between February 2 and February 6, 2026. While the overall barometer moved higher, the Future Expectations Index declined compared to the same time last year. The index fell to its lowest level since September 2024 and was 45 points lower than the level recorded in February 2025.
Farmers remain cautious about the broader economic environment. Concerns about agricultural exports eased slightly from the previous month but are still higher than they were in December. At the same time, the share of producers who believe the United States is moving in the right direction declined for the second consecutive month.
The survey also asked producers about long-term farm growth plans. Since 2016, February surveys have included questions about expansion plans. Results show that about 51% of respondents expect to expand their operations within the next five years. Among them, 14% plan to increase their farm size by at least 10%.
However, not all producers are planning to grow. Approximately 34% of respondents indicated they do not expect to expand, while about 15% said they plan to reduce the size of their operations.
Family involvement in farming remains an important factor for many operations. The survey found that 36% of producers plan to bring another family member into the farm business within the next five years.
Producers were also asked about the Farmer Bridge Assistance Program announced in late December. Nearly half of respondents said they plan to use these payments to pay down debt. Another 27% expect to improve working capital. Smaller shares indicated they would use the funds for family living expenses or for investing in farm equipment.
Overall, the results show that while farmers see some improvement in current conditions, uncertainty about input costs, commodity prices, and the overall economy continues to affect long-term confidence.
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