Farmers’ confidence rises ahead of election

By Andi Anderson

In October, U.S. farmers showed increased optimism, according to the latest Purdue University/CME Group Ag Economy Barometer. The index, which gauges farmer sentiment, rose by 27 points to 115, largely driven by higher confidence in the future.

This improvement comes just before the U.S. election, with many farmers expressing hope for positive changes ahead. The Future Expectations Index surged by 30 points to 124, and the Current Conditions Index reached 95, indicating gradual optimism despite concerns about the current year’s economic conditions.

James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture, noted that the survey provides valuable insights into farmers’ shifting outlook. In October, only 53% of farmers expected tough times for agriculture in the upcoming year, down from 73% in September.

Concerns over the next five years also eased, with only 33% of farmers worried about difficult times ahead, compared to 48% the previous month. Similarly, fewer farmers reported expecting worsening financial conditions on their farms, down to 23% from September’s 38%.

Despite the positive sentiment, Mintert highlighted that financial pressures persist. Many farmers reported that their financial situations have declined compared to last year, signaling ongoing challenges.

Political concerns, particularly regarding potential regulatory and tax changes, were also prominent, reflecting the impact of the approaching election on agricultural perspectives.

Another significant finding was the improvement in the Farm Financial Performance Index, which measures financial outlook for the coming year.

This index rose by 22 points to 90, suggesting optimism for better financial performance in 2025. Factors such as good fall crop yields and a smooth harvest season in the Corn Belt likely contributed to this positive trend.

The Farmland Value Expectation indices also improved, with the Short-Term Farmland Value Expectations Index reaching 120 and the long-term index rising to 159. These increases indicate that farmers remain hopeful about the strength of the agricultural economy and the value of farmland moving forward.

Overall, the October survey reveals an increase in farmer optimism, with many viewing current challenges as temporary and looking forward to a more favorable economic environment in the coming years.

Photo Credit: gettyimages-zoran-zeremski