High Input Costs Keep Farmer Sentiment Down

Farmer sentiment dropped again in May, with the Purdue University-CME Group Ag Economy Barometer Index dropping 2 points to 119. 

This month’s Current Conditions Index was 21 points below last year’s December index, reaching its lowest level since December 2024. 

The percentage of respondents who listed high input costs as their biggest concern was 51% in May, reaching a new high. In a related question, 46% of respondents indicated that high input costs are limiting improvements in their financial position this year. 

The percentage of respondents who think the U.S. is headed in the “right direction” declined from 57% in April to 52% in May, the lowest percentage since we started asking this question in July 2025. 

Michael Langemeier says caution is also showing up in investment behavior.