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.

June update

Input costs weigh on farmer sentiment.

Producer sentiment declined for the second consecutive month in May, according to the Purdue University/CME Group Ag Economy Barometer, as persistently high input costs and global instability continues to pressure producers’ outlook. Input costs are the dominant concern for producers, with a record 51% identifying rising expenses as their top challenge. Nearly half of respondents also indicated that high costs are limiting their ability to improve their financial position this year. The ongoing conflict involving Iran continues to amplify these pressures, particularly through its impact on energy and fertilizer markets. Approximately two-thirds of producers expect the conflict to reduce net farm income in 2026, underscoring concerns about further margin compression.

Financial conditions at the farm level remain strained. Just 14% of producers reported that their operations are financially better off than a year ago, while only 22% expect improvement over the next 12 months. Consistent with this cautious outlook, willingness to make capital investments has weakened, reflecting a more defensive posture as producers prioritize liquidity and financial stability.