Ag Economy Barometer Increases Again

According to the latest Purdue University/CME Group Ag Economy Barometer, farmer sentiment reached a four-year high in May. Purdue University’s James Mintert said the Barometer rose 10 points to a reading of 158.

“That's the highest barometer reading we've received since May of 2021," Mintert pointed out. "The Current Condition Index rose five points to a reading of 146. Once again, that's the highest current condition index since December of 2021, while the Future Expectation Index rose 12 points to 164, which was the highest future expectation index readings since April of 2021.”

Farmers Are More Optimistic About The Future of Trade

The Farm Financial Performance Index increased by eight points to a reading of 109, suggesting producers expect 2025 to be a somewhat stronger income year than 2024. When it comes to Ag exports, Mintert said farm country is feeling more confident.

“This month, the percentage of producers who said they expect exports to increase over the next five years skyrocketed to 52%," Mintert said. "That's up from just 33% who felt that way a month earlier. This was the highest percentage you said they expect to see Ag exports grow over the next five years since November of 2020.”

Mintert added the Short-Term Farmland Value Expectations Index rose sharply in May, climbing 14 points month-over-month to a reading of 124, the highest reading since March 2024. He added the shift reflects a growing anticipation among producers that farmland values will increase.