WEST LAFAYETTE, INDIANA, US — US producers are more optimistic about the future of agriculture with the Purdue University/CME Group Ag Economy Barometer index rising 17 points in June.

The index improved to a reading of 121. The Ag Economy Barometer is calculated each month from 400 US agricultural producers’ responses to a telephone survey. This month’s survey was conducted between June 12-16.

“Optimism about US agriculture’s future and a more sanguine interest rate outlook help explain producers’ more positive view of the future expressed in June’s survey; however current conditions in the farming economy continue to present a challenge for some producers,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “This month 4 out of 10 producers stated that their financial situation has deteriorated compared to a year ago.”

In June, 20% of respondents said they expected their financial condition to improve over the next year, compared to just 13% who said that in May. Meanwhile, only 32% expect their farm’s financial situation to decline over the upcoming year, compared to 44% who responded that way in May. Producers’ improved perspective on the future was not focused solely on their own farms, but extended to all of US agriculture.

A more optimistic view of the future also was reflected in the Farm Financial Performance Index, which rose 10 points in June to a reading of 86. The rally in corn and soybean prices for harvest time delivery that got underway in late May and extended into June was likely a contributing factor to the financial performance index rise. Although respondents were more optimistic about both crop and livestock returns this month, expectations for “good times” for livestock producers increased more than for crop producers.

This month’s survey also included a question targeted toward corn and soybean producers regarding their expectations for farmland cash rental rates in 2024. Twenty-five percent of the corn/soybean producers in this month’s survey said they expect 2024 cash rental rates in their area to rise above 2023’s rates. Of those respondents who said they expect rental rates to rise, nearly one-third (32%) said they expect 2024 rental rates to increase up to 5%, while nearly half (49%) look for rates to rise from 5% up to 10%, when compared to 2023.

This month’s survey included questions to learn more about producers’ thoughts on the passage of a new farm bill. Among corn and soybean producers, the Crop Insurance title and the Commodity title remain the two most important farm bill components.

Read the full Ag Economy Barometer report at purdue.ag/agbarometer.