Farmers retained their post-election optimistic outlook at the start of the new year as the January Purdue University/CME Group Ag Economy Barometer Index rose 5 points to a reading of 141. That was 35 points (33%) above the January 2024 reading. The barometer’s rise was primarily attributable to a 9-point rise in the Current Conditions Index, while the Future Expectations Index rose 3 points. Compared to recent surveys, fewer producers this month pointed to lower crop and livestock prices as a top concern, which helped explain why producers felt better about the current situation. The shift in attitudes was attributable in part to an improvement in crop prices from the time of the December to the January survey.
Producers expect 2025 to be better than 2024, as the Farm Financial Performance Index is at its highest level since late 2021. However, producers are concerned about the future of agricultural trade, with over 40% of respondents citing “trade policy” as the most important policy for their farm in the next five years and 40% of producers saying that they think a trade war is either “likely” or “very likely.”
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