The sentiment among U.S. farmers has shown a gradual improvement since the beginning of 2026, despite ongoing strains on the agricultural economy due to external factors like the Iran conflict. Growers express optimism about the direction of the country and the value of farmland, as highlighted in the March Ag Economy Barometer from Purdue University and CME Group.

Between March 16-20, Purdue University and CME Group conducted interviews with 400 farmers regarding the agricultural economic landscape. The Ag Economy Barometer Index demonstrated an increase, rising to 127 points in March from 116 points in February and 113 points in January. Notably, the Farm Investment Index also climbed to 53 points in March, up from 50 points the prior month.

A significant 18% of farmers reported that their operations have improved compared to a year ago. Additionally, 20% expressed expectations for better financial performance in the upcoming year, while only 18% anticipated worse performance. However, only 4% of farmers plan to increase machinery purchases within the next year, according to the latest barometer results.

Balancing Short-term Challenges with Long-term Confidence

Despite immediate pressures, farmers are optimistic about the future, primarily driven by rising farmland values and a belief that the U.S. is on a positive trajectory. Many farmers are currently benefiting from one-time bridge payments initiated by the Trump administration to mitigate market volatility, as reported by AgTechNavigator.

Approximately 65% of farmers believe that the U.S. is heading in the right direction, up from 59% in February. Furthermore, expectations regarding farmland values have slightly increased, moving from 123 to 125 in March.

However, concerns surrounding fertilizer prices and availability are prevalent, exacerbated by uncertainties related to the Strait of Hormuz. A separate survey conducted by the National Corn Growers Association indicated that nearly one-third of 1,000 surveyed U.S. corn farmers expressed anxiety over fertilizer market disruptions this year, a significant increase compared to concerns about 2027’s crop.

According to Michael Langemeier, the principal investigator of the barometer and director of Purdue’s Center for Commercial Agriculture, “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, although livestock producers tend to be more optimistic than crop producers.”