The Purdue University/CME Group Ag Economy Barometer climbed to 152 in February, 11 points higher than January. An improvement in the current situation on U.S. farms drove the stronger sentiment among producers. The Current Conditions Index hit 137, 28 points higher than January. The Future Expectations Index rose only three points in February to 159.Â
This month’s Current Conditions Index capped a long climb from late summer and early fall 2024 when the index bottomed out at 76. A recent crop price recovery, anticipated federal aid coming, and a strong livestock sector contributed to the optimism. The Farm Capital Investment Index jumped 11 points to 59 in February. This month’s rise in the investment index pushed the index four points above the November reading, which was taken just after the fall election.
The February index was also the most positive reading of the investment climate provided by farmers since May 2021.
(From the National Association of Farm Broadcasters)Â
Farmer Sentiment Rises As Current Conditions Improve on U.S. Farms
March 4, 2025
Michael Langemeier and James Mintert, Purdue Center for Commercial Agriculture
Farmer sentiment improved in February as the Purdue University-CME Group Ag Economy Barometer climbed to 152, 11 points above a month earlier. An improvement in the current situation on U.S. farms was the primary driver behind the stronger sentiment among producers, as the Current Conditions Index reading of 137 was 28 points above January’s reading. There was relatively little change in producers’ assessment of future prospects as the Future Expectations Indexrose just 3 points in February to 159. This month’s rise in the Current Conditions Index capped a long climb from the doldrums of late summer and early fall 2024 when the index bottomed out at a reading of 76. A sharp crop price recovery in the last several months, which was augmented by expectations for receipt of disaster payments authorized by Congress, combined with strength in the U.S. livestock sector, contributed to producers’ improved appraisal of conditions on their farms and in the U.S. agricultural sector. Despite the big improvement in the Current Conditions Index, the February Future Expectations Index was still 22 points higher than the current index, suggesting that farmers expect conditions to improve further. The February barometer survey took place from February 10-14, 2025.
The Farm Capital Investment Index jumped 11 points to 59 in February. This month’s rise in the investment index pushed the index 4 points above November’s reading, which was taken just after the fall election. The February index was also the most positive reading of the investment climate provided by farmers since May 2021. Interestingly, this month, it was a stronger appraisal of current conditions that helped push the index up instead of stronger expectations for the future. The February Farm Financial Performance Index reading of 110 was virtually unchanged from the prior month’s value of 111. Although the index changed little compared to January, it still leaves the financial index up sharply compared to last fall when it dipped to a low of just 68.
The Short-Term Farmland Value Expectations Index rose modestly in February, reaching 118, which was 3 points higher than in January and 8 points above the December reading. This month’s farmland index was also 3 points higher than a year ago and virtually equal to two years ago. When compared to the very positive readings received in the winters of 2021 and 2022, the index suggests …..