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Record high diesel costs cause farmer sentiment to decline in latest Ag Economy Barometer

An ag economist says ongoing financial uncertainty led to a decline in farmer sentiment in the latest Purdue University/CME Group Ag Economy Barometer.

Joana Colussi is with Purdue’s Center for Commercial Agriculture.

“The growing pessimism about the financial prospects over the next 12 months is very clear,” she says. “Farmers are less optimistic about the country’s current direction. There is no factor that will change that in the short term.”

She tells Brownfield record high fuel costs are one of the main factors pressuring balance sheets.

“Just as corn and soybean prices were recovering, the U.S. national average price of diesel topped $6 a gallon in September for the first time ever,” she says. “We continue to have some persistent challenges in agricultural production.”

Colussi says input costs and profitability concerns will likely continue to influence farmer sentiment heading into early 2027.

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: Joana Colussi, Purdue University