
The Purdue University-CME Group Ag Economy Barometer reported a substantial increase in farmer sentiment following the November 2024 U.S. elections. The barometer climbed 30 points to 145, its highest level since May 2021, reflecting growing optimism among farmers about the future of the agricultural sector.
Key findings from the November survey include:
The Future Expectations Index surged 37 points to 161, while the Current Conditions Index rose 18 points to 113.
One-third of respondents expect their operations to be better off financially in a year, up from 19% in October.
52% of farmers anticipate widespread good times for U.S. agriculture in the next five years, compared to 34% in October.
The Farm Capital Investment Index increased 13 points to 55, its highest reading since May 2021.
55% of farmers expect less restrictive environmental regulations in the next five years, a significant shift from October's outlook.
However, the survey also revealed concerns about future agricultural trade, with 42% of respondents believing a "trade war" that could decrease U.S. agricultural exports is likely or very likely.
James Mintert and Michael Langemeier from the Purdue Center for Commercial Agriculture noted that the sentiment improvement was largely attributable to producers' increased optimism about the future, particularly regarding the regulatory and tax environment for the agricultural sector.