Ag Barometer Shows Optimism About Current Conditions At Highest Level Recorded

Jan 19, 2021

American farmers continue to be more optimistic about their current situation even during an ongoing pandemic. The December Purdue Ag Economy Barometer survey results reflect improvements in trade and government aid.

Indices of Current Conditions and Future Expectations

When initially faced with the coronavirus, farmers' short-term confidence reached a record low with ethanol production down and supply chain issues.

Nine months later, optimism among agricultural producers about their current economic conditions hit the highest level since the survey began in 2015. Purdue University agricultural economics professor and barometer co-author Michael Langemeier said there are two reasons for that.

“And that's, for obvious reasons, is very strong government payments, in 2020, but also a very large increase in prices, particularly corn and soybean prices from early September all the way through December,” said Langemeier.

A record number of respondents said they are more inclined to make farm capital investments. About 25 percent more compared to November expect farmland values to increase within the next year.

The barometer’s December 2020 responses also show American farmers continue to worry over the future of agricultural production with the incoming Biden administration.

Concerns remain over changes to environmental and tax policies that would affect the industry and could hurt them economically.

China’s imports increased towards the end of 2020, raising prices of corn and soybeans. But survey respondents remained less optimistic than prior to the November elections that a trade deal beneficial to American farmers will be made with China.

Langemeier said that’s to be expected.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.