Farmer Confidence Plunges to Lowest Point Since 2022

The Purdue University/CME Group Ag Economy Barometer reported a sharp decline in farmer sentiment during April, reaching its lowest level since June 2022. The barometer fell 15 points from March to a reading of 99, driven by concerns regarding the current financial health of farms and worries about challenges in the year ahead.

Both subindexes of the barometer also saw declines, with the Current Condition Index dropping 18 points to 83 and the Future Expectations Index falling 14 points to 106. This April reading marks a significant low point, mirroring the sentiment observed in April 2020.

The April Ag Economy Barometer survey, conducted from April 8-12, highlighted farmers’ anxieties about financial performance and farmland values. The Farm Financial Performance Index declined to 76 in April, marking a 7-point drop from the previous month and a 21-point decrease from last fall’s peak of 97.

Farmers also expressed shifting expectations regarding interest rates and farmland values. Only 24% of respondents now anticipate interest rates rising over the next year, down from 32% in March. Similarly, fewer farmers expect farmland values to rise in the year ahead, with 29% of producers holding this view compared to 38% in March.