Farmer Sentiment Rises Again in August as Future Expectations Improve

Farmer sentiment continued to improve in August, with the Purdue University/CME Group Ag Economy Barometer rising nine points to 135. The increase was driven largely by optimism about the future: 28% of farmers now expect their operations to be financially better off a year from now compared with 24% who expect to be worse off. Still, caution remains, as 45% identify higher input costs as their biggest concern and the Farm Capital Investment Index fell five points.

Improving optimism may create openings for sellers in agricultural markets, but the continued focus on costs suggests value will matter. Consider farm equipment dealers, agricultural lenders, banks and credit unions, insurance providers, seed and feed suppliers, technology companies and other agribusinesses that can help farmers improve productivity, manage expenses or make strategic investments as confidence strengthens.