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Farmer sentiment weakened sharply in January, as the Purdue University/CME Group Ag Economy Barometer fell 23 points to 113. Producers reported worsening financial conditions compared to a year ago, with half indicating operations were worse off.
Thirty percent expect weaker performance in the next 12 months, while only 20% expect improvement. Operating loans are rising, often due to carryover debt from prior years, signaling increasing financial pressure. Concerns about U.S. agricultural exports also grew, particularly for soybeans, with competition from Brazil weighing heavily on producers. Short-term farmland values remained steady, but longer-term expectations fell.