WEST LAFAYETTE, INDIANA, US — A survey found that US 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 amid ongoing tensions with many of the United States’ largest agricultural trading partners, including Mexico and Canada. Notably, most producers said they believe the increased use of tariffs will ultimately benefit the US 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,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “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 Farm Capital Investment Index rose to 61 in April, a 7-point increase from March and the highest investment index reading since May 2021. Since the November 2024 election, there has been a marked shift in producers’ attitudes toward large investments. From May through October 2024, the index averaged just 36, while the average from November through April grew to 54 — a 50% increase from the previous six months.

Despite a rise in investment sentiment, nearly two-thirds of producers in April’s survey still said it was a bad time to invest, suggesting persistent caution among most US farmers. That group’s outlook helps explain the sharp decrease in new farm equipment sales that took place during 2025's first quarter.

The Farm Financial Performance Index held steady in April, dipping just 1 point from last month to a reading of 101. This marks the fourth consecutive month that the index has remained above 100, indicating that producers, on average, continue to expect their farm’s financial performance this year to match or modestly exceed last year’s results.

Expectations for short-term farmland values weakened in April, as the index fell 8 points to a reading of 110. This change was driven by a decrease in the number of producers anticipating higher farmland values in the coming year, balanced by a comparable increase in the percentage of producers expecting values to remain about the same.