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Farmer sentiment dipped for the third straight month in August, with the Purdue University/CME Group Ag Economy Barometer Index falling 10 points to 125. Producers expressed markedly less optimism about the future, as reflected in the Index of Future Expectations, which fell 16 points to 123. This marks the lowest reading for the future index since last September.
Producers’ perspective on current conditions changed little this month, as the Current Conditions Index rose 2 points from July to 129. Sentiment differed widely among producers according to whether their operations focused mainly on crops or livestock.
Crop producers responded with much less optimism than their livestock counterparts, reflecting the profitability disparity between the two enterprises. Beef cattle operations in particular are experiencing record profitability as the smallest cattle inventory since 1951 has pushed cattle prices to record levels. This stands in sharp contrast to returns for crop production, which have weakened in 2025.
