Farmer sentiment improved in April as the Purdue University-CME Group Ag Economy Barometer climbed 8 points to a reading of 148. The improvement in farmers’ sentiment was bolstered by increases in both the Index of Current Conditions, which rose 9 points to 141, and the Index of Future Expectations, which rose 8 points to 152. Somewhat surprisingly, this month’s improvement in farmer sentiment occurred despite ongoing trade disputes with many of U.S. agriculture’s largest trading partners. However, producers responding to the April survey overwhelmingly reported that they expect the increased use of tariffs by the U.S. to prove beneficial to the U.S. agricultural economy in the long run, which was reflected in the Future Expectations Index strengthening. The April barometer survey took place from April 14-21, 2025.
The Farm Capital Investment Index at 61 was 7 points higher in April than in March, reaching the highest investment index reading since May 2021. There was a marked shift in the investment index following the November 2024 election. From May through October 2024, the investment index averaged a reading of 36, while from November 2024 through April 2025, the average index value was 54 — 50% higher than during the preceding six months.
The Farm Financial Performance Index changed little in April. At a reading of 101, the index was just 1 point below a month earlier. April marked the fourth month in a row that the index was above 100, indicating that producers expect financial performance this year to equal or slightly exceed the year-ago level.
Despite the concerns farmers expressed in the April survey about the impact of tariffs on farm incomes and availability of inputs for their farm operations, 70% of respondents said they expect the increased use of tariffs will, in the long run, strengthen the U.S. agricultural economy.
EDITOR’S TAKE:
Pretty amazing improvement in farmers’ sentiment with all that was going on with tariffs and trade policy when this latest survey was taken. And if you think this is positive, wait until the next survey results are released. With recent developments to drastically lower tariffs with China and trade deals with other nations beginning to take shape, along with congressional progress on tax cuts, the results should be very impressive. It is also very encouraging to see the improvement in outlook towards capital investments. That means farmers/ranchers will be looking at equipment and trucks! Get ready by putting your inventory on AgTruckTrader.com® today if you haven’t done so already.
