Purdue survey: The settings of farmers continue the upward trend in February

The feeling of farmers improved in February as the Purdue University-Cme Group AG Economy Barometer rose to 152, 11 points over a month earlier. An improvement in the current situation on US farms was the main driver for the stronger mood among the producers, such as the Current conditions index Reading 137 was 28 points above the reading in January. The evaluation of the future prospects by the producers as the relatively little changed Future expectations index Rose only 3 points in February to 159. The rise of this month in the Current conditions index A long climb from the doldrums of the late summer and the early autumn 2024, when the index went out at a reading of 76. A sharp recovery of harvest prices in the past few months, which were increased in the US farmers and in the US sector, with the strength of the Congress, with the strength of the US sector in the US sectors that were contributed to the producers. Despite the great improvement of the Current conditions indexFebruary Future expectations index It was still 22 points higher than the current index, which indicates that farmers expect the conditions to continue to improve. The barometer survey in February took place from February 10th to 14th, 2025.

The Farm Capital Investment Index jumped by 11 points to 59 in February. The increase in the investment index this month pressed the index 4 points on the November reading, which was taken shortly after the autumn elections. The February index was also the most positive reading of the investment climate provided by the farmers since May 2021. Interestingly, it was a stronger assessment of the current conditions this month, which contributed to increasing the index instead of stronger expectations for the future. The February Farm Financial Performance Index Reading 110 was practically unchanged compared to the value of the previous month of 111. Although the index changed little compared to January, the financial index is still very excited compared to last autumn when it was accessible to only 68.

The Short -term arable land value expectations index Modest rose in February and reached 118, which was 3 points higher than in January and 8 points above the December reading. The arable land index of this month was also 3 points higher than a year ago and practically two years ago. Compared to the very positive measurements in the winters from 2021 and 2022, the index indicates that the manufacturers are not as optimistic in the coming year as in previous years, but they are more optimistic than in late summer and early autumn 2024.

Every February since the foundation of the barometer, the survey has raised a question in which the producers are asked: “What is an appropriate annual growth rate that you have for your farm in the next 5 years?”. This year, 50% of those surveyed stated that they either “not grow” (37%) or “to plan, leave or retire” (13%), which compared the information to grow or retire at 52% a year ago. Since 2016, the percentage of respondents in these two categories have been between 43% in 2016 up to 61% in 2022. The greatest postponement of the respondents in the 2025 survey was a reduction in the percentage of producers in 2024, which expected the producer with an increase in percentage producers, a reduction in the percentage of producers, which is produced Producers producing the increase in producers who expect the increase in producers. This year, 19% of the respondents chose one of these two categories with a high growth rate, more than twice as high as in 9%, which in 2024 chose one of the categories of fast growth rate.

Guidelines that affect agriculture are in the heads of the US farmers. 62 percent of the respondents in the survey of this month stated that the adoption of a new agricultural account in 2025 is either important (25% of those surveyed) or very important (47% of those surveyed). In a follow-up question, producers were asked which guidelines or programs for their farm will be most important in the next 5 years. The top election of the respondents in February was the “trade policy” (44% of those surveyed), followed by the “harvest insurance program” (18% of those surveyed). The concerns of the US farmers regarding trading policy were also obvious when they were asked about the probability of a “trade war” that leads to a significant decline in US farm exports. 48 percent of farmers in the survey of this month stated that a “trade war” was either “probably” (29% of the respondents) or “very likely” (19% of those surveyed).

Pack up

The Farmer mood rose again in February, whereby the peasant evaluation of current conditions in its agricultural companies has been significantly improved. Strengthening harvest prices, positive returns in the cattle sector and the expectations for the preservation of USDA disaster combined combined to improve the current situation on US farm. The relocation of the mood in relation to the current situation on her farms also seemed to encourage more producers to say that this is a good time to make large investments in their agricultural business. View of the Future expectations indexIt is clear that the producers remain optimistic, although they are concerned about the possible adoption of a new agricultural law in 2025 and the likelihood of a trade war that would have an adverse effect on the United States' agricultural exports.