Farmer sentiment rebounded in June as the Purdue University/CME Group Ag Economy Barometer rose 17 points (16.3%) to a reading of 121. The swing in sentiment was driven by producers’ more optimistic view of the future as the Index of Future Expectations jumped 25 points (25.5%) to 123, while their perception of the current situation was unchanged at 116.
The more optimistic view of the future held by respondents was reflected across the board as the Farm Financial Conditions, Short and Long-Term Farmland Value Expectations, and Farm Capital Investment indices all improved in June compared to May.
When asked to compare their farm operation’s situation today with a year ago, 40% of respondents said their operation was “worse off” financially than a year earlier vs. 37% who felt that way in May while just 15% chose “better off” vs. 17% in May. But when asked to look ahead one year, respondents’ attitudes changed. In June, 20% of respondents said they expected their financial condition to improve over the next year, compared with just 13% in May. Meanwhile, 32% expect their farm’s financial situation to decline over the upcoming year, compared with 44% in May. Producers improved perspective on the future was not focused solely on their own farms, but extended to all of U.S. agriculture. The percentage of producers expecting good times for U.S. agriculture in the upcoming five years rose eight percentage points to 33% while those expecting bad times fell three points to 41%.
Looking ahead, one-fourth of corn/soybean producers said they expect farmland cash rental rates to rise in 2024.
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