Mike Pearson takes a look at the latest ag barometer published by Purdue University's Center for agriculture in July.

The barometer increased by 8 points to a reading of 113-- indicating a jump in farmer's overall optimism.

This is despite of the decreasing commodity prices and high input costs.

The index of current conditions climbed 10 points to hit 100 points.

The index of future conditions rose 7 points to 119.

The increase in farmer's sentiment is puzzling.

Especially when producers are reporting the high price of input costs as one of their top concerns.34 percent.

Lower crop prices and livestock prices were cited by 29 percent as their biggest concerns.

Concerns over rising interest rates have decreased with only 17 percent dropping it as a top concern.

Despite the improved sentiment, the farm financial performance index dropped to 81 citing ongoing concerns of the financial health of many farms.

This is attributed to weaker commodity prices even and high production costs for farmers.

The farm capital improvement index rose to 38. However, the overall farmer improvement climate remains cautious.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.