Ag Economy Barometer Ends 2025 On A Down Note

Farmer sentiment dipped slightly in December, with the Purdue University/CME Group Ag Economy Barometer dropping three points to 136.  Purdue Ag economist James Mintert says while that reading is very similar to what was reported in December 2024, it left the Index 22 points lower than it was back in May, the high point of 2025.

“If you look at what was going on in terms of what drove the change, the current condition index at 128 was unchanged from a month ago," Mintert said.  "That left the current condition index at year end about 18 points below its 2025 peak, which was also back in May. Future expectations did drop, and that's what drove the change in the barometer. It was down four points to a reading of 140. That leaves that index down 24 points from its 2025 peak, which was also in May.” 

Mintert added when it comes to the Future, crop producers remain concerned about U.S. competitiveness on the global scene.  And it wasn’t just crop farmers that are concerned about the future.

“When we asked people about over the next five years are widespread good times expected in crops or livestock, the drop was in livestock," Mintert said.  "I don't know if I’d say it was ‘unexpected’, but it was an eight-point drop. It went from 49% saying good times to 41%. And almost no change on the crop side.”

The Farm Capital Investment Index also rose two points to 58.  Despite this increase, most producers, 60%, still see December as a bad time to make large farm investments.

Producers' confidence in the use of tariffs to strengthen the U.S. agricultural economy continued to decline in December.  Just 54% of respondents said tariffs would have a positive effect, down from 58% in October and 59% in November.

The survey was conducted December 1st-5th.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com