Producer sentiment slips on rising policy uncertainty

Farmer sentiment improved in April as producers expressed more optimism about current and future conditions on their farms. The Purdue University/CME Group Ag Economy Barometer rose 8 points to a reading of 148, up from 140 in March. The Index of Current Conditions climbed 9 points to 141, while the Index of Future Expectations increased 8 points to 152. The improvement in sentiment came amidst ongoing tensions with many of U.S. agriculture's largest trading partners, including Mexico, Canada and China.

Notably, a majority of producers said they believe the increased use of tariffs will ultimately benefit the U.S. agricultural economy; a view reflected in the stronger future expectations reading. Producers seem to be gaining confidence in the ag economy's longer-term outlook in spite of concerns they have about the impact of tariffs. This month's results suggest some producers are starting to look beyond near-term uncertainty and focus more on positioning their farms for the future. The April barometer survey took place between April 14-21.

-NAFB