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Farmer sentiment dropped again in June as the Purdue University-CME Group Ag Economy Barometer (AEB) Index declined from 119 points in May to 113 points in June (see Figure 1). The Index of Current Conditions fell by 5 points, while the Index of Future Expectations fell by 7 points (see Figure 2). June’s Current Conditions Index was 26 points below its December 2025 reading, reaching its lowest level since December 2024.

Only 12% of respondents indicated that their farm operations were better off in June than they had been a year ago. Looking ahead to the next 12 months, 22% of respondents expect their farms to be better off financially a year from now. The Farm Capital Investment Index fell 1 point to 40, its lowest level since September 2024.

This month’s survey included two questions related to the use of artificial intelligence (AI) or data-driven tools in agriculture. The first question asked survey respondents what they viewed as the main benefit of using these tools. Approximately 23% of respondents indicated that an increase in production would be the main benefit (see Figure 5). Reducing labor and reducing risk or uncertainty were chosen by 14% and 11% of respondents, respectively. Meanwhile, 52% of respondents said they did not see a meaningful benefit. A second question asked whether recommendations arising from data-driven tools would be difficult to follow. Approximately 63% of respondents indicated that recommendations would be sometimes difficult to follow, while 22% indicated that recommendations would often be difficult to follow.

Since July 2025, producers have been asked whether they think the U.S. is headed in the “right direction” or on the “wrong track.” After averaging 71% over the last six months of 2025, the percentage of producers who reported that the U.S. was headed in the “right direction” was 52% in May and 53% in June (see Figure 8).

Wrapping Up

Farmer sentiment decreased from 119 in May to 113 in June, with declines in sentiment regarding both current conditions and future expectations. The percentage of producers who expected good times over the next five years was 32% in June, which is 17 percentage points lower than in the June 2025 survey results. There continued to be a large disparity in expectations between crop and livestock producers. Approximately 25% of respondents expected good times for crop producers, while 68% expected good times for livestock producers.

Input costs remained a top concern, with high input costs identified as the most important factor limiting improvements in financial performance. Despite concerns about the future, respondents remained optimistic regarding both short-term and long-term land values.

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