Farmer sentiment plunged in April as the Purdue University-CME Group Ag Economy Barometer fell 15 points below a month earlier to a reading of 99. The barometer’s sub-indices both declined from a month earlier, with the Current Condition Index at 83, down 18 points, and the Future Expectations Index at 106, down 14 points. This was the weakest farmer sentiment reading since June 2022 and the lowest current condition rating since May 2020. Concerns about their farms’ current financial situation and expectations for weak financial performance in the year ahead were the driving forces behind the fall-off in farmer sentiment.

The Capital Investment Index fell to a reading of 31 in April, the lowest reading seen since mid 2022.

62% of farmers indicated their ag equipment purchase plans in the upcoming year were lower than they were a year ago, a 5-month high. Just 6% of farmers said their farm equipment purchasing plans were higher than one year ago.

37% of farmers said higher dealer inventories was their primary reason to consider now a good time to make large investments, the most selected option in April and the highest this percentage has been since July 2023

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