Producer Sentiment Drops 12 Points Amidst Rising Policy Uncertainty

New Data from the Purdue Ag Economy Barometer is showing a decline in farmer sentiment in March as concerns over agricultural trade and farm policy weighed on producers’ outlook for the future.

Weaker expectations for the future led to a decline in farmer sentiment in March as the Purdue University-CME Group Ag Economy Barometer index fell 12 points to a reading of 140, down from 152 a month earlier. Farmers’ view of the future was decidedly less optimistic in March than in February, as the Index of Future Expectations dipped to 144, which was 15 points lower than in February. A weaker Current Conditions Index, which dropped 5 points in March to 132, also contributed to the weakening in farmer sentiment. Falloffs in key crop prices since mid-February, combined with concerns about the future of agricultural trade and farm policy, were important factors behind the sentiment shift. Even with the decline in expectations for the future, farmers were still more optimistic about the future than the current situation, as the Future Expectations Index remained 12 points higher than the Current Conditions Index. The March barometer survey took place from March 10-14, 2025.