Farmer sentiment jumped again in November as the Purdue University/CME Group Ag Economy Barometer climbed 30 points to 145, the highest level since May 2021. The Future Expectations Index increased 37 points to 161, the highest reading since April 2021. The Current Conditions Index rose 18 points to 113.
The survey noted, “Producers’ sentiment improvement carried over into a more optimistic view about making large capital investments in their farming operation. At the same time, however, producer sentiment regarding farmland value changes in their home area over both the next year and the next five years changed little compared to a month earlier. In November, a majority of producers said they expect a less restrictive environmental regulatory environment for agriculture in the upcoming five years, which was a big shift compared to October. With respect to income tax and estate tax rates, the shift was small from October to November 2024. However, when compared to results from November 2020, there was a shift, with far more producers expecting a more favorable tax regime following the 2024 election than the 2020 election. Perhaps the biggest concern expressed by farmers as the transition to a new administration gets underway is the future of agricultural trade, with over two-fifths of survey respondents saying they think a ‘trade war’ is either likely or very likely.”
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