While US livestock producers have benefited from stronger market conditions, crop producers continue to face tighter margins.
Results from the February Purdue University-CME Group Ag Economy Barometer survey of about 400 farmers provide insight into how these differences are influencing producer sentiment, growth expectations and transition plans by farm type, according to Purdue University.
AVERAGE SENTIMENT MORE POSITIVE
The barometer’s index was 116, indicating average sentiment was more positive than during the index’s base period (the fourth quarter of 2015 and the first quarter of 2016). The AEB index is subdivided into two sub-indices: the Index of Current Conditions and the Index of Future Expectations. Index values for February were 121 and 113, respectively.
SENTIMENT BY FARM TYPE
In the survey, 22% of respondents indicated crop producers will have widespread good times, and 69% of respondents indicated livestock producers will have widespread good times.
The monthly survey also includes two questions related to livestock production. The first question asked producers whether their farm has a beef, hog or dairy operation.
The second question was addressed to those who answered the first question affirmatively and asked whether their livestock operation accounts for less than 25%, 25 to 50%, 50 to 75%, or more than 75% of their farm’s revenue.
Purdue University used the two livestock questions from the February survey to divide the monthly survey respondents into two groups. The first group (257 farms) derived less than 50% of their revenue from livestock production, and the second group (144 farms) derived 50% or more of their revenue from livestock production.
The average AEB index for livestock farms was 140, which was 38 points higher than the index for crop farms. A similar difference in producer sentiment between crop and livestock producers was found in the August 2025 survey.
The difference in the ICC index for the two groups was much wider than the difference in the IFE index.
CAPITAL INVESTMENT CAUTION
The Farm Capital Investment index measured whether respondents thought it was a good time or a bad time to make farm investments, including items such as machinery and buildings. The Farm Capital Investment index was 46 for crop farms and a slightly more optimistic 59 for livestock farms. An index below 100 indicates more respondents think it is a bad time to make such investments.
The Financial Performance index measures whether a farmer expects the farm’s financial performance to be better than, worse than, or about the same in the next 12 months. An index below 100 indicates more farms expect their performance to be worse in the next 12 months. The average index for August was 94. The average index for crop farms was 89 while livestock farms, with a reading of 104, were more optimistic.
Another question asks respondents to identify their biggest concerns using the following response choices: lower crop and/or livestock prices, high input costs, environmental policy, farm policy, interest rates, and availability of inputs. High input costs were the biggest concern for crop and livestock farms.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $235.84 per cwt to $236.06, compared with last week’s range of $234.91 to $248.00 per cwt. FOB dressed steers and heifers went for $371.19 per cwt to $372.04, compared with $369.34 to $377.44.
The USDA choice cutout Friday was down $0.98 per cwt at $399.13 while select was up $0.89 at $393.83. The choice/select spread narrowed to $5.30 from $7.85 with 61 loads of fabricated product and 12 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $442.89 per cwt, and 50% beef was $192.89
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.90 to $1.05 a bushel over the May corn contract, which settled at $4.59 1/2, down $0.06.
The CME Feeder Cattle Index for the seven days ended Friday was $361.33 per cwt, down $0.73. This compares with Monday’s Mar contract settlement of $358.45, up $0.70.