WEST LAFAYETTE, IN – Farmer sentiment improved modestly in February, but producers remain increasingly cautious about the agricultural outlook, according to the Purdue University–CME Group Ag Economy Barometer.
The barometer rose to 116 in February, up from 113 in January. The improvement was driven largely by stronger views of current conditions, which increased 11 points during the month. However, expectations for the future continued to soften. The Future Expectations Index declined slightly and now sits 45 points below the level recorded one year ago.
Survey responses highlight ongoing financial stress across farm operations. About 44 percent of producers reported their farms were worse off financially than a year earlier. Looking ahead 12 months, 29 percent expect their financial performance to decline, while only 18 percent expect improvement. Investment intentions also remain limited, with just 7 percent of respondents planning to increase machinery purchases during the coming year.
Longer-term business plans remain mixed. Roughly half of producers said they expect to expand their operations over the next five years, while 36 percent plan to bring another family member into the farm business. At the same time, concerns about export demand, input costs, and commodity prices continue weighing on producer confidence.
Short-term farmland value expectations improved slightly in February, though longer-term land value optimism continued to decline.
Farm-Level Takeaway: Producers report improving current conditions but remain cautious about agriculture’s long-term outlook.