U.S. farmer sentiment improved in October, fueled by optimism in the livestock sector, according to the Purdue University-CME Group Ag Economy Barometer.
The overall index climbed three points to 129, and the index of farmers' view of current farm conditions rose eight points to 130. However, views between livestock and crop producers vary greatly. Livestock producers remain optimistic about conditions on their farms as the beef sector continues to reach record-high profitability, while pessimism grows among crop farmers who continue to face low profit margins.
The index of arm financial performance expectations fell ten points to 78, while the farm capital index rose nine points to 62. Once again, there was a wide disparity between livestock and crop producers in both measures.
In response to crop producers’ weak operating margins, this month’s survey asked farmers if they planned to make changes for the 2026 corn planting season. A majority said they were not planning any.
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If USDA provides supplemental payments to farmers to compensate for weak commodity prices, 53% of producers said they would use the funds to pay down debt.
Some 58% of producers now expect U.S. tariff policy to strengthen the agricultural economy. The share who think the outcome is uncertain has doubled since spring and now sits at 16%.
More than 70% of U.S. farmers still believe that the U.S. is headed in the “right direction.”
The barometer is based on survey results gathered Oct. 13-17. The next report will be released Dec. 2.
