U.S. farmer sentiment has gradually improved since the start of 2026, despite ongoing challenges to the ag economy that were exacerbated by the Iran war, as growers were optimistic about the country’s direction and farmland values, according to the March Ag Economy Barometer from Purdue University and CME Group.
This month, Purdue University and CME Group interviewed 400 farmers from March 16-20 about the state of the ag economy. The Ag Economy Barometer Index rose to 127 points in March, compared to 116 points in February and 113 in January. Additionally, the Farm Investment Index rose to 53 points in March, compared to 50 in February.
Roughly 18% of farmers said their operations were better off this March than a year ago. Additionally, 20% of farmers expect better financial performance in a year’s time, compared to 18% who expect worse financial performance. This is despite only 4% of farmers planning to increase farm machinery purchase in the next year, according to the March Ag Economy Barometer.
Farmers caught between ‘short-term challenges and long-term confidence’
Farmers are optimistic about the future due to farmland values and views that the U.S. is heading in the right direction, according to the Ag Economy Barometer. Many U.S. growers are receiving payments from the Trump administration’s one-time bridge payments, which were designed to address market volatility, as AgTechNavigator previously shared.
Almost two-thirds (65%) of farmers believe that the U.S. is heading in the right direction, up from 59% who said the same in February. Additionally, farmland value expectations ticked up from 123 to 125 in March.
However, farmers are raising concerns about fertilizer market disruptions due to uncertainty around the Strait of Hormuz, according to a separate survey. Almost a third of 1,000 surveyed U.S. corn farmers were concerned about fertilizer prices and availability for this year, compared to nearly double the amount who were more worried about 2027’s crop, per a recent National Corn Growers Association survey.
“While producers are feeling more optimistic about the future, there’s still a noticeable gap between short-term challenges and long-term confidence. Longer-term optimism is supported by stronger expectations for farmland values and the broader economy, though livestock producers remain notably more optimistic than crop producers,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture, in a press release.
