Farmer sentiment rises despite concerns over tariffs
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Agricultural producers across the United States are expressing increased optimism despite ongoing concerns over the impact of tariffs on the ag industry, according to the latest Purdue University/CME Group Ag Economy Barometer.
The barometer is calculated monthly from a telephone survey of 400 agricultural producers across the country. The barometer rose eight points to a reading of 148 in April.
Michael Langemeier, the barometer’s principal investigator and director of the Purdue Center for Commercial Agriculture, said 70% of respondents believe that the increased use of tariffs will strengthen the U.S. ag economy in the long run.
“I was very surprised that it was 70%,” Langemeier said. “I think if you asked ag economists this same question, I think it would be flipped—that 70% or a large percentage would say it’s going to weaken. One of the reasons that economists would say that is when you have trade disputes, like we’re currently having, you worry about your long-run market share.”
The latest survey was conducted between April 14-21.
Producers were asked what they expect the imposition of tariffs on imports would have on their farm’s income in 2025. In April, 56% said they think tariffs will have either a “negative” or “very negative” impact. Meanwhile, 21% said tariffs would be a positive for their income.
One out of four producers also said it was a good time to make large investments in their farm operations. However, nearly two-thirds still said it was a bad time to invest, suggesting persistent caution among a majority of U.S. farmers, according to Purdue.
You can learn more about the April Ag economy Barometer by clicking here and in the video below.