An ag economist says strong profit margins in the livestock sector led to a rise in this month’s Purdue University/CME Group Ag Economy Barometer.
Professor emeritus Jim Mintert says producers are becoming more optimistic about the financial performance of their operations.
“The returns in the cattle sector have just been phenomenal,” he says. “Record high returns and net profitability have really supported the index. In the crop sector, I think it’s really about the strength we’re seeing in yields.”
But he also suggests that high input costs continue to be the number one concern heading into 2026.
“They’re looking for ways to try and reduce production costs,” he says. “People are really trying to reevaluate their operation and look for ways they can make some changes that won’t hurt yields.”
Mintert says Purdue’s Center for Commercial Agriculture continues to monitor how recent ag policy developments could impact sentiment in next month’s survey.
EDITOR’S TAKE:
It is always good to hear that farmers are more optimistic about their future. As we have stated several times recently, it is no secret that the livestock producers are doing very well. Crop producers have not been quite so lucky, but more recent developments with China reentering the soybean, wheat and sorghum markets, strong demand for crushed soybeans, ethanol exports on the rise, very good crop yields in most areas and the prospect of federal financial aid, will push their optimism levels higher as well. Once the ag economy is hitting on all cylinders, it will be the next golden age of agriculture.
You should be prepared for that next golden age! Start by making sure your inventory is shown on AgTruckTrader.com®. That is where a lot of farmers/ranchers look for CAD dealers and the trucks they want to purchase or lease. Also make sure your staff is well versed in the various programs available through the CAD membership. Most of all, make sure everyone on your team is prepared to ask that all important question that gets the conversation going – “ARE YOU A FARMER/RANCHER”?
