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Ag Economy Barometer Shows Farmer Sentiment Improving

Agricultural producers’ sentiment increased for the second consecutive month, as the Purdue University/CME Group Ag Economy Barometer index rose 5 points to a reading of 115, a 12% increase compared to the previous year. The sentiment growth is largely attributed to farmers’ improved perceptions of their farms’ financial conditions and prospects. This month’s Ag Economy Barometer survey was conducted from November 13-17, 2023.

The Index of Current Conditions rose 12 points to 113 while the Index of Future Expectations improved by 2 points to 116. The Farm Financial Performance Index also rose in November to a reading of 95, which is up 3 points from October. The financial conditions index reached its low point back in the spring. The November reading was 25% higher than in May and 10% higher than at the start of fall harvest in September. Farmers’ expectations regarding financial performance improved this fall, with fewer producers expecting their farms' performance to be worse than a year ago.

The Farm Capital Investment Index has fluctuated throughout 2023 but rebounded this month to a reading of 42, up 7 points from October. Over the last several months, producers who view the investment climate as favorable were asked why they feel that way. The percentage of respondents choosing “strong cash flows” as a reason to invest has been drifting lower since summer when approximately 40% of respondents chose that as their primary reason. This month just 22% of respondents chose “strong cash flows,” with “higher dealer inventories” chosen by 29% of respondents, claiming the top spot as to why now is a good time to make large investments and implying a potential change in market conditions. The shift in responses suggests that farmers might be seeing a moderation in farm equipment price rises, making it a more favorable time for large investments.

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Canada's Agriculture Day 2025

Video: Canada's Agriculture Day 2025

Let's celebrate Canadian agriculture.

Well, number one, you don't eat without farmers. Farmers put food on the table. And what could be more important than that?

Well, I think it's important that Canadians understand exactly what takes place, what happens to produce this food, no matter what sector you're talking about.

An awful lot of work goes into that. It's important to understand that meat does not come out of a showcase, and milk does not come out of a bottle. It's produced by farmers and hard work.

Canada has the best farmers in the world. And agriculture is vital to Canada.

In 2024, our agriculture and agri-food sector represented $150 billion of Canada's GDP, nearly $100 billion of our exports, and one in nine jobs.

From grains to fruits to dairy and beef, we are truly blessed with an incredible bounty. Having spent my whole life in agriculture, I see so much potential for the sector.

This time last year, I was proud to open our first-ever agriculture and trade office in the Indo-Pacific, the world’s fastest-growing economy, to cement our presence in the region and grow our exports even more. We've also been making historic investments to help our farmers to boost their yields, protect the planet, and earn a fair living.

The world wants more top-quality, sustainable food, and I know our Canadian farmers can deliver. And it's so important that you do that with pride. We need you.

Quite simply, you eat the most top quality food in the world. You do that because of the quality of farmers and ranchers you have in this country.

Just say thank you to a farmer or a rancher. They work very hard, yes, for a living, but also with a sense of pride in what they produce.

That's what Canada's Agriculture Day is all about.