Farmer sentiment across the U.S. rose modestly in September, gaining one point on the Ag Economy Barometer compiled by Purdue University and the CME Group. However, the slight increase in overall optimism belies deeper concerns within the ag economy-particularly surrounding commodity prices, financial performance, and capital investment.

The Current Conditions Index, a key component of the barometer, fell by seven points in the latest survey, reflecting heightened anxiety among producers over on-farm profitability and market uncertainty. Farmer outlook on short-term financial health continues to deteriorate, with sentiment around capital investments falling sharply-dropping eight points month-over-month.

Contributing to the financial unease is a continuing decline in support for tariff policies, which many producers had previously backed as a buffer against foreign competition. For the third consecutive month, expectations for farm financial performance and tariff benefits trended downward.

Yet amid these challenges, farmers appear to be placing greater faith in federal policy intervention. A full 83% of respondents said they expect compensation packages similar to the Market Facilitation Program (MFP) to return as a response to ongoing export losses. Additionally, 71% of farmers surveyed said they believe the country is "headed in the right direction"-a figure suggesting confidence in future policy measures despite current headwinds.

Sustainability also continues to trend upward among growers. The survey asked producers about cover crop adoption, revealing that over 50% had planted cover crops on between 26% to 50% of their total acreage. This represents a consistent increase in sustainable practices since 2021.

The September barometer was based on data collected from September 15 to 19, offering a snapshot of producer attitudes heading into the final quarter of 2025. The next update is expected on November 4, when analysts will be watching closely for shifts in sentiment as harvest progresses and farm bill discussions continue in Washington.