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.

October update

Short-term headwinds persist, while long-term confidence holds.

Producer sentiment has weakened in September according to the Purdue/CME Ag Economic Barometer as rising production costs continue to pressure farm profitability. Input costs remain the top concern among producers, with more than half reporting that higher expenses are the primary factor limiting improvements in their operation's financial performance. Diesel prices have become a lynchpin, increasing costs across nearly every aspect of farm operations. As margins tighten and uncertainty persists, many producers are becoming more cautious with capital expenditures, expansion plans and other long-term investments.

Despite these near-term challenges, the longer-term outlook for agriculture remains more positive. USDA’s Chief Economist projects that stronger commodity prices, tightening supplies and government support payments will help bolster farm income in 2027. At the same time, producers should expect operating costs to remain elevated, even as some supply disruptions and geopolitical pressures subside. This suggests a future characterized by stronger revenues but continued focus on cost management. Producer sentiment toward the long-term outlook remains positive, reflecting confidence in the underlying strength and resilience of the agricultural sector.