Farmer sentiment weakened in April as producers across the country continued to face financial pressure from high input costs and uncertainty surrounding the agricultural economy.
The latest Ag Economy Barometer from Purdue University and the CME Group fell to 121 in April, down from 127 in March. The monthly survey measures the outlook of U.S. farmers and ranchers on current conditions and future expectations within the ag sector.
According to the report, both major components of the index declined. The Current Conditions Index dropped 11 points, while the Future Expectations Index also moved lower, reflecting growing concern about profitability and long-term financial stability.
High input costs remained the top issue identified by producers, with 46 percent of respondents citing it as their primary concern. Farmers also reported increasing anxiety about the availability of production inputs as the growing season continues.
The survey found only 15 percent of producers believe their farming operations are better off financially than they were a year ago. Meanwhile, more farmers expect economic conditions to worsen over the next 12 months than those anticipating improvement.
The Farm Capital Investment Index also declined in April, falling to its lowest level since October 2024. Researchers say the drop suggests producers are becoming more hesitant to make major investments in equipment, buildings or expansion projects amid ongoing uncertainty.
The findings underscore continued challenges facing the agriculture industry as farmers navigate elevated operating expenses, fluctuating markets and tighter financial margins.