Farmers more optimistic about ag economy

WEST LAFAYETTE, Ind. — Farmer optimism about the ag economy improved in April, according to the Purdue University/CME Group Ag Economy Barometer.

The barometer rose 8 points to a reading of 148, up from 140 in March.

“Producers seem to be gaining confidence in the ag economy’s longer-term outlook in spite of concerns they have about the impact of tariffs,” said Michael Langemeier, director of Purdue’s Center for Commercial Agriculture.

“This month’s results suggest some producers are starting to look beyond near-term uncertainty and focus more on positioning their farms for the future.”

Most producers think the increased use of tariffs will ultimately benefit the U.S. agricultural economy, according to the report.

Top Takeaways

• One out of four producers said it was a good time to make large investments.

• Nearly two-thirds of producers said it was a bad time to invest.

• There was a sharp decrease in new farm equipment sales from the first quarter of 2025.

• On average, farmers expect their farm’s financial performance this year to match or modestly exceed last year’s.

• Expectations for short-term farmland values weakened in April.

• Fifty-six percent of farmers said they expect the U.S. tariff policy to have a negative or very negative impact on their farm’s income in 2025.

• Fifty-three percent anticipate some difficulty in obtaining inputs as a result of higher import tariffs.

• Among those expecting supply challenges, fertilizer was the primary cited concern, followed by parts for farm machinery and electronics and crop chemicals.

• Seventy percent said they expect the increased use of tariffs to strengthen the ag economy long term.

Read the complete report at purdue.edu/agbarometer.