Farmer sentiment in the U.S. increased slightly in October as farming conditions improved, but growers reported greater concerns about tariffs and their balance sheets, according to Purdue University’s and CME Group’s Ag Economy Barometer (AEB).
Each month, Purdue University and CME Group survey 400 farmers about their views on a range of issues related to the ag economy and assign a point value to assess overall sentiment.
The October AEB was released the same day as the 2026 midterm elections, where Democrats gained control of the Senate and House of Representatives, which will lead to a shift in ag policy priorities.
The AEB index rose 123 points in September to 126 points in October 2026, while the Farm Financial Performance Index increased to 94 in October, compared to 90 in September. The Farm Financial Performance Index is still below its August peak of 103.
Additionally, the Farm Capital Investment Index rose from 39 in September to 55 in October, the highest point since last December, despite 20% of farmers who said it was a good time to invest in buildings or machinery.
Despite margin pressures, most farmers (62%) said that they agreed or strongly agreed that they had a strong balance sheet, a decline from 76% who said the same in January of this year. Similarly, 59.6% of growers said that they agree or strongly agree with the statement “we have a solid working capital position.”
For the second month in a row, more farmers (52%) said that the country was heading in the wrong direction as opposed to the right direction. Also, most farmers (51%) said that tariffs would weaken the U.S. ag economy, compared to 35% who said they would do the opposite. Over the last year, farmers’ views on tariffs have shifted, with 54% of growers saying tariffs would strengthen the ag economy in December 2025.
