Farmer sentiment improved in May for the second consecutive month, reaching its highest level since May 2021. The Purdue University/CME Group Ag Economy Barometer rose 10 points to 158. The reading was driven by increased optimism about current conditions and future expectations. A more favorable outlook on U.S. agricultural exports and reduced concern over tariffs contributed to the rise.

The Farm Financial Performance Index also increased. This suggests farmers expect better income in 2025. However, the Farm Capital Investment Index fell. This reflects hesitation about investing in operations. However, the reading is higher than in the previous May numbers.

Farmland value expectations rose sharply, with 37% of producers expecting values to increase. This is up from 25% in April. Optimism around long-term export growth surged, with 52% expecting export increases over the next five years. This is an increase from 33% in April. Belief in the benefits of free trade declined compared to 2020 levels. Concern over tariffs impacting income also lessened.

The survey also explored labor concerns. Of the producers who typically hire non-family labor, 26% anticipate hiring will be difficult due to immigration policy changes. While the overall sentiment is improving, the data reflects a mix of optimism and caution regarding trade, investment and labor challenges in agriculture.

Read more here about the latest Purdue University/CME Group Ag Economy Barometer.