Farmer sentiment dropped sharply in April, as indicated by the Purdue University/CME Group Ag Economy Barometer. It fell 15 points to an April reading of 99. Both of the subindexes of the barometer also dropped. The Current Conditions Index dropped 18 points to 83, while the Future Expectations Index fell by 14 points to 106.
April marked the lowest reading since June 2022. The sentiment drop was driven by worries regarding the current financial situation on producers’ farms and anticipated financial challenges in the coming year. The decline was also driven by broader concerns about financial performance and farmland values.
The Farm Financial Performance index declined to 76 in April, a seven-point drop from the previous month. Only 24 percent of the respondents anticipate interest rates rising over the next year, down from 32 percent from March. Fewer farmers say they expect to see farmland values rise over the next year.
