Farmer sentiment is at its lowest point in nearly a decade, complicating an already tricky investment landscape ahead of a tight U.S. presidential election.
In the face of weakening income expectations, farmer sentiment in September reached its lowest levels since March 2016 — driven in part by worries around the U.S. presidential election — according to the latest reading from the Purdue University/CME Group Ag Economy Barometer.
In fact, 78% of the 400 agricultural producers assessed in the survey — which tracks the health of the agricultural economy in the U.S. — expressed concern that changes in government policy following November's election could potentially worsen an already difficult environment.
Farmers are much less confident now than they were a year ago about their finances. Specifically, the report showed that the farmers' financial expectations index dropped 18 points to 68 compared to the prior-year period. This would mark the third month in a row of declining expectations.
And for the first time since 2020, more farmers expect farmland values to go down rather than up. James Mintert, director of Purdue University's Center for Commercial Agriculture, expects land values to likely flatten in the short term. In the long term, conditions could get even worse if commodity prices continue to fall amid supply outpacing growth and demand, he added.
"People are clearly less optimistic about land values now than they were a year ago, two years ago and especially.
