For the second month, farmer sentiment improved as the Purdue University-CME Group Ag Economy Barometer climbed five points. November’s 12-point rise in the Current Conditions Index to a reading of 113 was primarily responsible for this month’s sentiment improvement as the Index of Future Expectations only improved by two points. Both sub-indices exceeded their year-ago levels in November.
The Current Conditions Index increased by 15 percent, and the Future Expectations Index was up 11 percent compared to November 2022. The improved perception among U.S. farmers regarding their farms’ financial condition and prospects contributed to this month’s more positive sentiment reading. The Farm Capital Investment Index also rose during November, although respondents who said it was a good time to invest were more likely to point to rising dealer inventories of farm equipment as a reason than strong farm cash flows.
Farmers continue to be relatively optimistic about future values for farmland as the short-term farmland index held steady while the long-term index drifted lower.