Farmer sentiment weakened in June following two months of improvement. The Purdue University/CME Group Ag Economy Barometer dropped 12 points from the previous month to 146. A change in producers’ expectations for the future served as the primary factor in the shift. The Index of Future Expectations sank 18 points to 146. However, the Current Conditions Index only lost two points to 144.
A drop in optimism about future agricultural exports seems to have influenced producers’ weakened outlook. Even with the June declines, all three indexes persist at higher levels than a year ago. The Farm Financial Performance Index dropped five points to 104, with producers projecting a slightly weaker financial outlook for their farms in June compared to May. An index above 100 indicates that U.S. farmers expect a stronger financial performance in 2025 than in 2024. The Farm Capital Investment Index rose five points in June to 60.
-NAFB