Farmer sentiment jumped again in November, with the Purdue University/CME Group Ag Economy Barometer climbing 30 points to a reading of 145, marking the highest level since May 2021, said Purdue Agricultural Economist James Mintert, in a release.
Both of the barometer’s sub-indices increased in November. The Future Expectations Index saw the largest jump, rising 37 points to 161, while the Current Conditions Index increased 18 points to 113, Mintert said.
The sentiment boost reflects growing optimism about a more favorable regulatory and tax environment for agriculture following the US presidential election, the release said.
This month’s survey was conducted from Nov. 11-15, the week following the election.
A MORE POSITIVE OUTLOOK
In November’s survey, farmers reported a notably more positive outlook for their operations and the broader agricultural economy than in prior months, he said. The percentage of producers expecting their farm’s financial performance to improve over the next year climbed to 33%, up from 19% in October.
Optimism about the US agricultural sector also surged, with 34% of farmers anticipating good times financially in the next 12 months, more than double October’s 15%, the report said.
Looking ahead five years, 52% of November’s respondents predicted widespread prosperity for US agriculture, a noticeable increase from 34% the previous month, Mintert said. This growing confidence also was reflected in farmers’ investment plans, as 22% reported that it’s a good time for large capital investments, compared with 15% in October.
Farmers’ improved sentiment also carried over to their investment outlook, as the Farm Capital Investment Index rose 13 points to a reading of 55 — the highest since May 2021, he said. The change was driven partly by expectations of stronger financial performance in 2025 compared to 2024.
For the second straight month, the percentage of producers expecting better financial conditions in the year ahead increased, climbing to 25%, up from 16% in October, the release said. This shift drove the Farm Financial Performance Index up to 106, marking a 16-point increase from October and a 38-point jump since September.
FARMLAND VALUE DIP
Following improvements in the short-term and long-term farmland value indices in October’s survey, both indices saw modest declines in November, the report said. The Short-Term Farmland Value Expectations Index dropped by five points, while the Long-Term Farmland Value Expectations Index decreased by three points.
Despite these small decreases, the indices remained relatively strong, with the short-term index at 115 and the long-term index at 156, Mintert said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $190.00 per cwt to $190.85, compared with last week’s range of $186.86 to $189.51 per cwt. FOB dressed steers, and heifers went for $294.15 per cwt to $298.63, compared with $290.89 to $298.91.
The USDA choice cutout Tuesday was down $2.18 per cwt at $310.83 while select was off $1.67 at $275.33. The choice/select spread narrowed to $35.50 from $36.01 with 109 loads of fabricated product and 45 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $324.58 per cwt, and 50% beef was $78.60.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.35 to $1.54 a bushel over the Dec corn contract and in Kansas unchanged at $0.15 over Mar. Dec settled at $4.23 1/4, down 1 1/4, and Mar settled at $4.32 1/4, down $0.00 1/4.
The CME Feeder Cattle Index for the seven days ended Monday was $259.38 per cwt, up $2.25. This compares with Tuesday’s Jan contract settlement of $259.30, up $2.45.