More Optimism in Farm Country Drives Boost in this Month’s Ag Barometer

An ag economist says more optimism in farm country helped boost producer sentiment in this month’s Purdue University/CME Group Ag Economy Barometer. Professor emeritus Jim Mintert says it rose to its highest level since June.

“The trade announcement with China took place after the October survey was done,” he says. “Corn and soybean prices were up between 10 and 15 percent in that mid-October to mid-November time frame. That has really changed people’s perspectives on trade in general and their expectations for the future.”

He believes there’s an expectation trade will resume to a more normal pattern. “Trade has influenced overall farmer sentiment,” he says. “I think there’s a recognition by farmers about how important exports are to the overall health of the ag economy.”

Mintert says he expects trade to continue to drive farmer sentiment heading into 2026.

                  Graphic provided by Purdue's Center for Commercial Agriculture.

Mintert also stated, “I think the Trump Administration will recognize this is a challenging financial environment, so they want to make sure they’re going to enter next year with a stronger balance sheet and as strong of a financial position as possible.” According to the most recent survey results, when USDA provides relief through Market Facilitation Payments (MFP), over half of the farmers will use the funds to pay down debt.

EDITOR’S TAKE:

Like we often say, more optimism and more money in farm/ranch country spurs more truck sales. The payments will be welcomed, especially by crop farmers. Farmers always prefer to earn their money from the marketplace, but since they have little control over trade policies or geopolitical actions that disrupt the marketplace, government support is the last resort. Keep in mind that food production and distribution is a national security interest which causes government to respond with additional support in difficult circumstances.

The money should be in the hands of farmers and ranchers during the first quarter of 2026. Be prepared to see an increased interest in purchasing or leasing that new or AgPack® qualified used truck. Make sure to always ask that all important question when a customer walks onto your showroom floor – “Are you a farmer/rancher”? If the answer is yes, then use all the CAD tools to close the deal.