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Ag Economy Barometer signals growing concern about profit margins in 2026

An ag economist says rising input costs and concerns about product availability due to the ongoing conflict in Iran led to a decline in farmer sentiment in this month’s Purdue University/CME Group Ag Economy Barometer.

Michael Langemeier is the director of Purdue’s Center for Commercial Agriculture.

“When you look at the general price increases across the board with inflation, producers are anticipating cash flows to be relatively tight,” he says. “Both crop and livestock producers have been hurt by the conflict.”

He tells Brownfield some survey respondents also expect the conflict to impact break-even prices for this year.

“If you hadn’t bought your nitrogen before the conflict started, it’s at least five percent,” he says. “It is rather large for corn, wheat, and some other crops. It’s both the nitrogen and diesel prices that are a concern.”

The Barometer is a nationwide measure of the health of the U.S. agricultural economy and surveys 400 agricultural producers on economic sentiment each month.

AUDIO: Michael Langemeier, Purdue’s Center for Commercial Agriculture