Ag Economy Barometer: Farmers more optimistic about ag economy going into election

WEST LAFAYETTE, Ind. — Farmer sentiment about the ag economy increased in October ahead of the election, rising 27 points from the month before, according to the Purdue University/CME Group Ag Economy Barometer.

“This is the highest October reading since 2021,” said James Mintert, director of Purdue’s Center for Commercial Agriculture.

“The barometer was up because both the Current Conditions Index and Future Expectation Index rose. The Current Conditions Index was up 19 points compared to last month. The Future Expectation Index jumped 30 points compared to last month.”

The October survey indicated some optimism among producers that economic conditions may strengthen, avoiding an extended downturn in the farm economy.

“We continue to ask producers what their biggest concerns are for the upcoming year,” Mintert said. “The top two concerns continue to be high input costs and low crop and livestock prices.

“Fewer people are worried about interest rates. Those interest rate concerns continue to dissipate, particularly when you compare them to the beginning of 2024.”

Other Takeaways

• In October, 53% of producers anticipated challenging times for the U.S. agricultural economy in the year ahead, down from 73% in September.

• Fewer producers expect worsening financial conditions on their farms over the next 12 months, dropping to 23% in October from 38% in September.

• Over half of the producers reported that their farm’s financial condition was worse than a year ago.

• Many producers expressed worries about potential policy changes impacting their farms and the agricultural economy, with regulation, environment and taxes featured prominently alongside price concerns.

• The Farm Financial Performance Index increased 22 points in October. Contributing factors likely include high fall crop yields and a stress-free harvest season in the Corn Belt and Plains states.

Read the complete report at ag.purdue.edu/commercialag/ageconomybarometer/.