A survey of farmers across the United States found they are even more pessimistic than they were in May.
The Index of Future Expectations fell 5 points to a reading of 96, marking the lowest level for the index since October 2016, reports Purdue University in Indiana.
Meanwhile, producers were slightly more optimistic regarding current conditions; the Index of Current Conditions improved 5 points to a reading of 99.
The Ag Economy Barometer is calculated each month from 400 US agricultural producers' responses to a telephone survey.
This month's survey was conducted between 13-17 June.
"Rising input costs and uncertainty about the future continue to weigh on farmer sentiment," said James Mintert, the barometer's principal investigator and director of Purdue University's Center for Commercial Agriculture.
"Many producers remain concerned about the ongoing escalation in production costs as well as commodity price volatility, which could lead to a production cost/income squeeze in 2023."
The Farm Financial Performance Index which is primarily reflective of income expectations for the current year, improved by two points to a reading of 83 in June, yet remains at one of the index's lowest readings over the past two years.
When asked about expectations for their farm's financial condition in June 2023 compared to June 2022, 51 said they expect their farms to be worse off financially a year from now.
This is the most negative response received to this question since data collection began in 2015.
