Farmer sentiment improved for the second month in a row, with the Purdue University-CME Group Ag Economy Barometer (AEB) Index increasing from 126 points in July to 135 points in August (see Figure 1). Both subindices also increased; however, the Index of Current Conditions rose by only 1 point, while the Index of Future Expectations increased by 11 points (see Figure 2). For the first time since June 2025, a higher proportion of respondents expect their operation to be better off financially (28%) than worse off (24%) a year from now. Optimism regarding export prospects over the next five years also improved this month, reaching an index value of 140, the highest since last December. Higher input costs, chosen by 45% of respondents, remained the biggest concern. The August barometer survey was conducted among 402 farmers across the country from August 10 to 14, 2026.
The Farm Financial Performance Index increased from 90 at the start of the year to 103 in August, reflecting greater optimism among respondents about their financial prospects over the next 12 months. Despite this increase, the Farm Capital Investment Index dropped 5 points to 45 (see Figure 3).
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