Farmer sentiment improves amid stronger financial conditions

For the second month in a row, farmer sentiment improved as the Purdue University/CME Group Ag Economy Barometer climbed five points to a reading of 115, which was 12% higher than a year earlier. November’s 12-point rise in the Current Conditions Index to a reading of 113 was primarily responsible for this month’s sentiment improvement as the Index of Future Expectations only improved by 2 points. The Current Conditions Index increased 15% and the Future Expectations Index was up 11% compared to November 2022.

The primary driver behind this month’s sentiment improvement was stronger farm financial performance expectations among survey respondents. The Farm Capital Investment Index also rose during November, although respondents who said it was a good time to invest were more likely to point to rising dealer inventories of farm equipment as a reason than strong farm cash flows. Farmers continue to be relatively optimistic about future values for farmland as the short-term farmland index held steady while the long-term index drifted lower.

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