Purdue/CME Ag Barometer Slides to 119 as Cost Concerns Hit 51%
CME•May’s Purdue/CME Ag Economy Barometer fell to 119 as the Current Conditions Index plunged 8 points to its weakest level and 51% of farmers cited record high input costs as their main concern. The Farm Capital Investment Index dropped to 41 while farmland value expectations rose to 130 and 160.
1. Ag Economy Barometer Update
May’s Purdue/CME Ag Economy Barometer slipped to 119 from 121 in April. While the Future Expectations Index ticked up by 1 point, the Current Conditions Index plunged 8 points to its weakest level since late 2024.
2. Input Cost Concerns
High input costs emerged as the top issue, with a record 51% of respondents flagging it as their primary worry and 46% saying it limits financial improvements. Approximately two-thirds of farmers expect reduced net farm income in 2026.
3. Investment and Farmland Outlook
The Farm Capital Investment Index declined 3 points to 41, marking its lowest reading since September 2024. Meanwhile, the Short-Term Farmland Value Expectations Index climbed to 130 and the Long-Term index rose to 160.
4. Potential CME Trading Implications
Heightened financial pressures and pessimistic sentiment may prompt increased usage of agricultural futures and options on CME Group platforms as farmers seek to hedge against cost volatility and protect margins.
