U.S. farmer sentiment reached its highest level since June, according to the November Purdue University–CME Group Ag Economy Barometer.
The index rose to 139, up 10 points from October. The increase was driven largely by a 15-point jump in the Future Expectations Index, which climbed to 144. The rise was attributed to higher crop prices and improved export prospects.
Producer optimism about their farm's financial performance also increased. That index rose to 92, up 14 points from October. Optimism outweighed growing pessimism among livestock producers, who saw cattle prices fall over the past month.
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However, sentiment about current conditions and investment slipped. The Current Conditions Index fell 2 points to 128, and the Farm Capital Investment Index dropped 6 points to 56.
The survey also asked producers about their outlook on trade. Only 7% said they expect U.S. agricultural exports to weaken in the next five years, down nearly 23% from March and 7% from October.
When asked whether farmers would likely receive compensation similar to the 2019 Market Facilitation Program, 60% said it was likely. Of those respondents, 58% said they would use the payments to pay down debt.
The barometer is based on survey results gathered Nov. 10–14. The next report comes out Jan. 6.
