Farmer sentiment improved in February as the Purdue University-CME Group Ag Economy Barometer climbed to 152, 11 points above a month earlier. An improvement in the current situation on U.S. farms was the primary driver behind the stronger sentiment among producers, as the Current Conditions Index reading of 137 was 28 points above January’s reading. There was relatively little change in producers’ assessment of future prospects as the Future Expectations Indexrose just 3 points in February to 159.
This month’s rise in the Current Conditions Index capped a long climb from the doldrums of late summer and early fall 2024 when the index bottomed out at a reading of 76. A sharp crop price recovery in the last several months, which was augmented by expectations for receipt of disaster payments authorized by Congress, combined with strength in the U.S. livestock sector, contributed to producers’ improved appraisal of conditions on their farms and in the U.S. agricultural sector. Despite the big improvement in the Current Conditions Index, the February Future Expectations Index was still 22 points higher than the current index, suggesting that farmers expect conditions to improve further. The February barometer survey took place from February 10-14, 2025.
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