Farmer sentiment improved in February as the Purdue University/CME Group Ag Economy Barometer climbed 11 points from the previous month to 152 and 41 points (36.9%) above last year. An improvement in the current situation on U.S. farms was the primary driver behind the stronger sentiment among producers, while future expectations rose modestly.
Strengthening crop prices, positive returns in the livestock sector and expectations for receipt of disaster payments from USDA all combined to make the current situation on U.S. farms better. Producers remained optimistic about the future, although they were concerned about whether there will be a new farm bill in 2025 as well as the likelihood of a trade war adversely affecting U.S. agricultural exports.
The survey showed 62% of respondents to the survey said passing a new farm bill in 2025 was either important (25%) or very important (47%). When asked which policies or programs will be most important to their farming operation in the next five years, the top choice was “trade policy” (44%), followed by “crop insurance program” (18%). Forty-eight percent of farmers indicated they think a “trade war” was either “likely” (29%) or “very likely” (19%).
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