Three broad-based measures of farmer sentiment showed improvement in July, according to the Purdue University/CME Group Ag Economy Barometer. The index rose 8 points to 113, the Index of Current Conditions increased by 10 points to 100, and the Index of Future Expectations reached 119, 7 points higher than the previous month.
Despite a decline in corn and soybean prices, farmer sentiment improved in July. The positive shift can be attributed to fewer respondents reporting worsened conditions compared to a year ago and a decrease in those expecting negative future outcomes.
The survey conducted from July 15-19, 2024, revealed that high input costs remained the biggest concern for 34% of farmers. Additionally, 29% of farmers cited the risk of lower crop and livestock prices as a top concern, up from 25% in June.
The Farm Financial Performance Index dropped 4 points to 81 in July, reflecting farmers’ worries about weakening commodity prices and high input costs. Despite these concerns, the Farm Capital Investment Index rose 6 points to 38, indicating a slight improvement in producers’ perspectives on capital investments.
James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture, noted that the increase in optimism was somewhat puzzling given the declines in crop prices. However, fewer producers cited rising interest rates as a primary concern for the upcoming year, which corresponded with the modest improvement in their perspectives on capital investments.
The survey also revealed that nearly three-fourths (72%) of crop farmer respondents expect cash rental rates to remain roughly the same as in 2024 for the 2025 crop year’s farmland leases.
The Purdue University Center for Commercial Agriculture, founded in 2011, provides professional development and educational programs for farmers. CME Group, the world’s leading derivatives marketplace, enables clients to trade futures, options, cash, and OTC markets, empowering market participants worldwide to efficiently manage risk and capture opportunities.