Industry Insights

Industry insights

AgWest Farm Credit’s industry research team covers the state of major agricultural commodities in Alaska, Arizona, California, Idaho, Montana, Oregon and Washington. The market updates are based on various sources, and include boots-on-the-ground insights from AgWest’s own lending, appraisal and crop insurance teams across the West. For industry specific information, news and upcoming events, check out our industry pages below.

May update

Rising fuel costs and geopolitical tensions weigh on farmer sentiment.

Farmer sentiment declined in April, according to the Purdue University/CME Group Ag Economy Barometer, as rising input costs and global instability continues to pressure producers’ outlook. Producers remain highly sensitive to volatility in energy and fertilizer markets, particularly amid the ongoing conflict in Iran, which has disrupted natural gas and fertilizer supplies. Two-thirds of respondents indicated the conflict is expected to have a negative impact on net farm income in 2026, underscoring the growing concern around margin compression.  

Financial conditions also remain strained at the farm level. Only 15% of producers reported their operations were better off than a year ago, while 28% expect financial performance to worsen over the next 12 months. Broader sentiment indicators reflect a similarly cautious outlook. According to the Farm Journal Ag Economists’ Monthly Monitor, 63% of economists believe producers are worse off than a year ago, and 31% expect further deterioration in the year ahead. High input costs continue to dominate producer concerns, with nearly half of respondents identifying them as their primary issue. In response to this weaker outlook, willingness to invest in large capital expenditures has fallen to its lowest level in over a year, with producers increasingly prioritizing debt reduction over new investments.