Farmer sentiment improved in February as the Purdue University/CME Group Ag Economy Barometer Index rose from 113 points in January to 116. The Current Conditions Index increased by 11 points, while the Future Expectations Index dropped one point. The Future Expectations Index this month was 45 points lower than last year’s February index, reaching its lowest level since September 2024.
Although concerns about agricultural exports moderated somewhat from the previous month, they’re still higher than those expressed in December. In addition, the percentage of respondents who think the U.S. is headed in the “right direction” declined for the second month in a row. Almost 44 percent of respondents to the survey indicated that their farm operations were worse off in February than they were a year earlier. About 15 percent of respondents plan to reduce the size of their operations, while 34 percent said they don’t plan to grow at all.
-NAFB