In September, the Ag Economy Barometer showed a one-point increase, yet farmers’ assessment of current agricultural conditions declined by seven points, signaling growing unease over record corn and soybean yields contributing to downward pressure on crop prices. At the same time, future expectations improved by five points, with many producers expressing confidence in the direction of U.S. agricultural policy. n nA significant portion of farmers—over 80%—anticipate the possibility of government intervention if trade conflicts lead to further declines in commodity values, drawing comparisons to the 2019 Market Facilitation Program. This expectation reflects ongoing concerns about market volatility and income stability. n nAdditional findings from the survey reveal a cautious outlook for 2025, with producers forecasting weaker financial performance compared to 2024. Confidence in farmland value appreciation has also waned, with fewer respondents expecting price increases in the coming year than in earlier 2025 surveys. This shift has influenced investment behavior, leading to a more restrained approach to capital expenditures. n nOn the sustainability front, 53% of surveyed farmers reported using cover crops on part or all of their land. Among those adopting the practice, 40% began within the past five years, while 9% have maintained cover cropping for over two decades. These trends suggest a gradual but steady integration of soil health practices into mainstream farming operations. n nFor further details, visit purdue.edu/agbarometer. n
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Farm economic conditions weakening, farmers say
WEST LAFAYETTE, Ind. — The Ag Economy Barometer rose one point in September, but farmers’ perceptions about current conditions on the farm fell seven points — suggesting concern about record-high corn and soybean yields pressuring crop prices. n nAt the same time, optimism about the future increased five points, with many farmers believing U.S. policy is “headed in the right direction.” n nThere are also hopes for a potential government support program due to lower commodity prices. n nMore than 80% of producers think it’s likely or very likely that, in the event that a trade war negatively impacts commodity prices, a program similar to 2019’s Market Facilitation Program will help compensate for agricultural product price weakness. n nOther Highlights n n• Farmers expect weaker financial performance in 2025 than in 2024. n n• Fewer farmers this month said they expect farmland values to rise in the year ahead than in previous surveys this year. n n• Weakness in the farm financial outlook spilled over into a weaker capital investment outlook by producers. n n• Over half, 53% of the farmers that were surveyed reported using cover crops on at least some of their acreage. Among cover crop users, 40% said they adopted the practice within the last five years, while 9% have used cover crops for more than two decades. n nLearn more at purdue.edu/agbarometer.