Farmers pessimistic about ag economy, survey shows

WEST LAFAYETTE, Ind. — Farmer sentiment about the ag economy reached its lowest levels since 2016, according to the Purdue University/CME Group Ag Economy Barometer.

“The continued drop in the barometer reflects deepening concerns among farmers regarding expectations for farm income in 2024 and 2025,” said James Mintert, the barometer’s principal investigator.

“It’s notable that producer sentiment dropped back to levels last seen in 2016, when the U.S. farm economy was in the early stages of an economic downturn.

“In addition to commodity prices and input costs weighing heavily on their operations, producers are also facing considerable uncertainty about what lies ahead for their farms with the possible government policy changes following the upcoming 2024 elections.”

Producers expect worse financial performance for their farms in the upcoming year compared to their expectations at this time last year, the report stated.

Report Highlights

• 34% of farmers cited input prices at a top concern.

• 33% cited lower output prices as their primary concern.

• 17% cited interest rates as their top concern.

• 26% of respondents expect exports to rise over the next five years, the most pessimistic response to this question since it was first introduced in 2019.

• 78% of producers expressed concern that government policy changes following the fall 2024 elections could impact their farms.

Learn more at ag.purdue.edu/commercialag/ageconomybarometer.