Farmer sentiment improved in March even as concerns about rising input costs persist, according to the latest Purdue University/CME Group Ag Economy Barometer.
The barometer rose from 116 in February to 127 in March, based on a survey of 400 producers conducted March 16-20. The increase was driven largely by a 14-point increase in the index of future expectations. However, that measure remains 12 points below December levels and 16 points lower than March 2024.
At the same time, concern over input costs intensified. The share of respondents citing high input costs as their top concern rose from 44% to 46%.
A notable gap remains between crop and livestock producers’ outlooks, wrote Michael Langemeier and Joana Colussi of the Purdue Center for Commercial Agriculture in the report. Just 31% of respondents said they expect good times for crop producers, compared with 63% who anticipate favorable conditions for livestock producers.
Confidence in the broader economy also strengthened. More respondents said the U.S. is headed in the “right direction,” and a growing share expect farmland prices to increase over the next five years.
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“While producers are feeling more optimistic about the future, there’s still a noticeable gap between short-term challenges and long-term confidence,” Langemeier said in a press release. “Longer-term optimism is supported by stronger expectations for farmland values and the broader economy, though livestock producers remain notably more optimistic than crop producers.”
The March survey also explored interest in leasing farmland for solar energy production. Twelve percent of respondents said they had discussed a solar lease in the past six months. Reported lease rates varied widely, with roughly 21% exceeding $1,500 per acre.
