Farmer sentiment rises again in August as future expectations improve

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CME Group (NASDAQ:CME) reported August results from the Purdue University/CME Group Ag Economy Barometer, showing farmer sentiment rising to 135 from 126 in July. The Index of Future Expectations climbed 11 points while the Index of Current Conditions edged up 1 point. For the first time since June 2025, more respondents expect to be financially better off than worse off in 12 months. The Farm Financial Performance Index increased from 90 in January to 103 in August, but the Farm Capital Investment Index fell 5 points to 45.

Export optimism reached an index reading of 140, the highest since December 2025, although higher input costs remained the top concern. The August survey of 402 U.S. farmers also highlighted skills priorities: production skills were seen as having the highest return (29%), while strategic planning (28%) was most cited as needing improvement and as the leading area where artificial intelligence could help (32%). Short-term farmland value expectations rose 8 points to 127, with 65% viewing farmland as a good investment. In August, 51% of respondents felt the U.S. was moving in the right direction.

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WEST LAFAYETTE, Ind., Sept. 1, 2026 /PRNewswire/ -- For the first time since June 2025, respondents in the August Purdue University/CME Group Ag Economy Barometer survey expect their operation to be better off financially rather than worse off a year from now. The improved outlook raised farmer sentiment from 126 in July to 135 in August. While the Index of Future Expectations increased 11 points, the Index of Current Conditions rose only 1 point. Optimism about export prospects over the next five years also improved this month, reaching 140 — the highest since December 2025. Higher input costs remained the biggest concern this month. The survey was conducted among 402 farmers across the nation from Aug. 10-14.

The Farm Financial Performance Index rose from 90 at the beginning of the year to 103 in August, indicating increased optimism among respondents about their financial outlook for the next 12 months. Despite this increase, the Farm Capital Investment Index declined by 5 points to 45.

This month's survey featured three questions on operator skills. The first asked respondents to identify the skill with the most return on investment for their farm, with production skills the most valued at 29%, followed by financial management and analysis at 23%, and strategic planning at 22%. The second question asked which skill their farm most needed to improve, with strategic planning at 28%, selling products at 20% and buying inputs at 19%. The third question asked which skills could be improved most through artificial intelligence, with strategic planning at 32%, financial management and analysis at 28%, and production at 18%.

In August, the Short-Term Farmland Value Expectations Index rose by 8 points to 127. The survey identified alternative investments, interest rates and inflation as the top three influences on farmland values. Periodically, the survey asks respondents to evaluate farmland as an investment. For this month, 65% viewed farmland as a good investment, 17% as medium and 18% as poor.

"Producers are looking beyond the day-to-day management of their operations and thinking more strategically about the skills they need to succeed," said Michael Langemeier, the barometer's principal investigator and director of Purdue's Center for Commercial Agriculture. "The emphasis on strategic planning, both as an area for improvement and as a potential application for artificial intelligence, suggests producers see opportunities to use new tools to strengthen decision-making."

Since July 2025, producers have been asked whether they believe the U.S. is moving in the "right direction" or on the "wrong track." The average "right direction" response was 71% in the final six months of 2025 and 62% in the first quarter of 2026. Since April, the percentage of producers who feel the U.S. is heading in the right direction has fluctuated between 51% and 57%. In August, 51% of respondents said the U.S. was moving in the right direction.

About the Purdue University Center for Commercial Agriculture

The Center for Commercial Agriculture was founded in 2011 to provide professional development and educational programs for farmers. Housed within Purdue University's Department of Agricultural Economics, the center's faculty and staff develop and execute research and educational programs that address the different needs of managing in today's business environment.

About CME Group

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

About Purdue University

Purdue University is a research institution ranked among the top 10 public universities in the United States. More than 106,000 students study at Purdue across multiple campuses, including more than 57,000 at our main campus locations in West Lafayette and Indianapolis. As a land-grant university committed to affordability and accessibility, Purdue's main campus has frozen tuition 14 years in a row, enabling more students than ever to graduate debt-free.

Source: Michael Langemeier, mlangeme@purdue.edu, 765-494-9557

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SOURCE CME Group

FAQ

What did the August 2026 Purdue/CME Ag Economy Barometer reveal about farmer sentiment for CME (CME)?

The August 2026 Ag Economy Barometer showed farmer sentiment rising to an index of 135, up from 126 in July. According to CME Group, future expectations improved more than current conditions, signaling stronger confidence in farm financial prospects over the next 12 months among surveyed producers.

How did the Farm Financial Performance and Capital Investment indices change in August 2026 for CME (CME)?

In August, the Farm Financial Performance Index rose to 103 from 90 at the start of 2026, indicating better financial outlooks. According to CME Group, the Farm Capital Investment Index declined by 5 points to 45, suggesting continued caution toward major capital purchases by farmers.

What were farmers’ expectations for U.S. agricultural exports in the August 2026 Purdue/CME survey (CME)?

Farmers’ optimism about U.S. agricultural export prospects reached an index of 140 in August 2026, the highest since December 2025. According to CME Group, this reflects more positive expectations for export opportunities over the next five years among surveyed producers nationwide.

How do farmers view farmland values and investment attractiveness in the August 2026 CME (CME) barometer?

The Short-Term Farmland Value Expectations Index increased by 8 points to 127 in August. According to CME Group, 65% of respondents considered farmland a good investment, 17% medium, and 18% poor, with interest rates, inflation and alternative investments cited as key value drivers.

What farm management skills did producers prioritize and link to AI in the August 2026 CME (CME) survey?

Producers saw production skills as offering the highest return at 29%, followed by financial management and strategic planning. According to CME Group, strategic planning was most cited as needing improvement (28%) and as the skill most likely to benefit from artificial intelligence, at 32% of responses.

How did surveyed farmers view the U.S. direction in the August 2026 Purdue/CME barometer (CME)?

In August, 51% of surveyed producers said the U.S. was moving in the right direction. According to CME Group, this share has fluctuated between 51% and 57% since April 2026, down from higher averages recorded in late 2025 and early 2026.