
(Purdue University/CME Group Ag Economy Barometer/James Mintert)
WEST LAFAYETTE, Ind. — Farmer sentiment improved for the second consecutive month in May, reaching its highest level since May 2021. The Purdue University/CME Group Ag Economy Barometer rose 10 points to a reading of 158, up from 148 in April. Both the Index of Current Conditions and the Index of Future Expectations contributed to the increase, with the current conditions index up 5 points to 146 and the future expectations index jumping 12 points to 164. The sentiment boost was driven by a more optimistic outlook on U.S. agricultural exports and a less negative view of how tariffs will impact farm income in 2025.
“While the uptick in sentiment is certainly notable, it’s important to recognize that producers are navigating a complex mix of optimism and caution,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “Producers’ expectations for exports and farm income have improved, but concerns remain about capital investment and, for some operations, the potential for labor shortages due to immigration policy changes.”
A key factor contributing to this month’s climb in farmer sentiment could be linked to a more positive view of the U.S.’s long-run agricultural trade prospects. In May, 52% of producers said they expect agricultural exports to increase over the next five years, surging from 33% in April and the highest percentage of positive responses to this question since November 2020. Meanwhile, 12% of producers said they believe exports will decline, down from 24% the previous month.
The May barometer survey took place May 12-16.
Source: Purdue University
Comments