Farmer sentiment improved in March as the Purdue University-CME Group Ag Economy Barometer (AEB) Index rose from 116 points in February to 127 (see Figure 1). The Current Conditions Index increased by 6 points, while the Future Expectations Index increased by 14 points (see Figure 2). The Future Expectations Index this month was still 12 points below last year’s December index, and 16 points below last year’s March index. The percentage of respondents who cited high input costs as their biggest concern increased from 44% to 46% this month. However, the percentage of respondents who think the U.S. is headed in the “right direction” and who expect land prices to be higher five years from now also increased. The March barometer survey was conducted among 400 farmers across the nation from March 16-20, 2026.
Approximately 18% of respondents indicated that their farm operations were better off in March than they were a year ago. Looking ahead 12 months, 18% expected worse financial performance, compared to 20% who expected better financial performance. The Farm Capital Investment Index rose by 3 points to 53. However, only 4% of survey respondents indicated that they plan to increase farm machinery purchases in the upcoming year.
This month’s survey included questions about inflation and interest rate expectations. Approximately 39% of respondents expected inflation for consumers to be above 3% (see Figure 4). When asked whether the U.S. prime interest rate would be lower, about the same, or higher 12 months from now, 34% of respondents indicated that interest rates would be lower, while 16% said interest rates would be higher.
Read the full Ag Economy Barometer here: https://ag.purdue.edu/commercialag/ageconomybarometer/farmer-sentiment-improves-despite-rising-input-costs-concerns/?utm_source=delivra&utm_medium=email&utm_campaign=AgBarometer_20260407&utm_id=49351670
