Farmer sentiment drifted lower in December as the Purdue University/CME Group Ag Economy Barometer dropped 9 points to a reading of 136. The decline was driven by producers’ weaker perspective on current conditions in U.S. agriculture and their farms, with the Index of Current Conditions falling 13 points to 100. Although the Current Conditions Index declined this month, it remains 24 points above its low in September and 5 points higher than in October. The Index of Future Expectations also fell 8 points to 153, remaining 59 points above its September low and 29 points higher than the October reading. This month’s survey was conducted from Dec. 2-6, 2024.
“While sentiment dipped this month, it’s clear that much of the postelection optimism about future conditions is still holding strong,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “Producers’ optimism about the future seems to stem largely from their expectations for a more favorable policy environment over the next five years.”
Following a 13-point increase in November’s survey, the Farm Capital Investment Index fell 7 points to a reading of 48. The weakening in investment sentiment was reflected in a lower percentage of farmers who believe it is a good time to invest, dropping to 17% from 22% in November. At the same time, the proportion of producers who viewed it as a bad time to invest increased slightly to 69%, up from 67%.
Purdue/CME Group
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