US Farmers are More Optimistic Than a Six Month Ago

The University of Purdue Ag Economy Barometer is showing a healthy increase

Photo by Romain Lohezic on Unsplash

The January University of Purdue/CME Group Ag Economy Barometer was released earlier this week, and it continues to show that farmers are more optimistic about the farm economy than before the election.

The index rose 5 points to 141 from a month earlier based on a 9-point increase in the current conditions index while the index of future expectations only rose by 3 points.

The future index is at 156 while the current index is at 109. This appears to be the largest gap at least since 2017.

The index appears to show that farmers assume that 2025 will be better than 2024 and based on current crop price trends that may be correct assuming that prices stay elevated through harvest.

The Short-Term Farmland Value Expectations Index bottomed last summer at about 95 and is now at a healthier 115.

Although the index trend is positive, about 23% of farmers show that unpaid operating lines are being carried into 2025 which is up from 17% a year ago. However, this is still much lower than the 35% reading from January 2020.

We appear to have a healthier start to 2025 from crop farmers than a year ago, but we will have to see if the trend continues for the full year. We will keep you posted.