Farmer sentiment nose-dived in August, according to the Purdue University/CME Group Ag Economy Barometer, which fell 13 points (11.5%) to a reading of 100. The index dropped 15 points (13.0%) from August 2023. The Index of Current Conditions fell 17 points (17.0%) to 83, while the Index of Futures Expectations dropped 11 points (9.2%) to a reading of 108.
The survey noted, “Weakening farm income prospects weighed on farmer sentiment as the outlook for a bountiful fall harvest were more than offset by declining crop prices. This month’s decline in the barometer takes farmer sentiment back to the average level observed from fall 2015 to winter 2016, a period when farm incomes were declining sharply. The weakness in farmer sentiment could indicate that farmers expect this year’s farm income downturn to last for an extended period.”
Although the short-term farmland index remained above 100, signaling that more survey respondents still expect values to rise over the next year than those anticipating values to decline, farmers are less optimistic about farmland values this summer than in recent years. Notably, the short-term farmland index posted its lowest reading since spring 2020. Despite the weakness in farmer sentiment and expectations for weak farm financial performance, 70% of crop farmers in this month’s survey said they expect farmland cash rental rates to remain about the same in 2025 as this year.
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