Farmer sentiment reached a four-year high in May, driven by growing optimism on agricultural exports and the impacts of tariffs on farm income, according to the Purdue University/CME Group Ag Economy Barometer.
Increases in the Index of Current Conditions and the Index of Future Expectations contributed to the 158 reading, a 10-point jump from April’s 148. The current conditions index was up 5 points at 146 and the future expectations index showed a 12-point jump from April to 164.
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This uptick in farmer sentiment was influenced by “a more positive view of the U.S.’s long-run agricultural trade prospects,” the report said. The survey also found that 52% of producers predicted increased agricultural exports over the next five years, the highest percentage of positive responses to the export outlook since November 2020.
The barometer summary also states that producers’ thoughts on tariffs are softening. In May only 43% of respondents indicated negative expectations of tariff impacts on farm income, compared to 56% in April and 57% in March.
The May barometer survey was conducted May 12-16. June’s sentiment reading is scheduled to be released July 1.
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