For the first time since January 2017, the Purdue University/CME Group Ag Economy Barometer has reached its highest point.
The May reading of 141 is 16 points higher than the April reading of 125. It’s the first time the barometer has crossed the 140 threshold since Nov. 2016.
Much of the boost in sentiment is driven by improved sentiment of current conditions and a more optimistic view of the future.
“The Index of Future Expectations had a large rise during the month of May relative to April, and we had a modest rise in the index of current conditions,” said Jim Mintert, director of the Center for Commercial Agriculture at Purdue University.
The Index of Future Expectations has also reached its highest level since Feb. 2017.
The results are released the first Tuesday of every month. The survey was conducted before news of implementing steel and aluminum tariffs on several of the U.S.’s biggest trading partners and allies: Canada, Mexico and the European Union.
Each month, a survey of 400 agricultural producers from across the U.S. asks questions about the state of the sentiment of the farm economy.