The September Ag Economy Barometer recorded its lowest readings since March. Declining income prospects pushed farmer sentiment down as the barometer fell 12 points to 88.

The current conditions assessment nearly matched that of April 2020, when COVID concerns were top of mind for farmers. Weak output prices combined with high input costs were key problems cited by survey respondents in September. 

Biggest concerns

Survey results indicate farmers are concerned about commodity prices, input costs, the future of agricultural trade and how the upcoming election could affect their farm operations. Producers’ concerns about commodity prices were backed up by their lack of confidence in the future of U.S. agricultural exports.

This month, just 26% of respondents reported that they expect U.S. agricultural exports to rise over the next five years. This was the least optimistic perspective regarding agricultural exports in a barometer survey since the question was first posed in 2019.

In a related question, 78% of farmers said they are concerned there will be government policy changes that affect their farms following the fall 2024 elections.

The majority of farmers expect farmland values to weaken in the year ahead. For the first time since 2020, the Short-Term Farmland Value Index dropped below 100 to a reading of 95. declined 10 points to a reading of 95.

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The Long-Term Farmland Values Index remained positive in September, rising 5 points higher than the August reading. 

Cover crop usage

Over half of corn and soybean farmers responding to the survey reported that they currently plant cover crops on part of their farm, and one in five respondents said they had planted cover crops in the past. For farmers planting cover crops, the proportion of acreage with cover crops is on the rise.

In 2021, 41% of cover crop users said they planted cover crops on more than 25% of their crop acreage. By 2023, that percentage had increased to 50%, and in this year’s survey, 68% of cover crop users reported planting cover crops on more than one-fourth of their farms’ acreage.

The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy. This month’s survey was conducted from September 9-13, 2024.