Farmer sentiment in May climbed to its highest level since May 2021.
The Purdue University/CME Group Ag Economy Barometer index reached 158, ten points above April.
Farmers were more optimistic about current conditions and future expectations.
The Current Conditions Index climbed five points to 146, and the Future Expectations Index jumped 12 points to 164.
Behind the sentiment improvement, farmers’ views were much more optimistic about U.S. agricultural export prospects, combined with a less negative view of tariffs’ impact on 2025 farm income, than respondents were in March or April.
The Farm Financial Performance Index improved by eight points to 109 in May, indicating farmers expect 2025 income to be somewhat stronger than 2024.
Despite expectations for stronger financial performance this year, the Farm Capital Investment Index dropped six points from April to May with a reading of 55.
The Short-term Farmland Value Expectations rose 14 points to 124.
