New Survey: Farmers Feel Better About the Future, But Manufacturing Suffering

Farmer optimism reached the highest level in four years as they assess current conditions, future trade prospects, and their own bottom line. That is according to the latest PurdueUniversity/CME Group Ag Economy Barometer, which tracks responses from 400 agricultural producers nationwide each month.

The survey’s report stated, “Key reasons behind the sentiment improvement were a much more optimistic view of U.S. agricultural export prospects, combined with a less negative view of tariffs’ impact on 2025 farm income than respondents provided in either March or April.”

Over the past month, farmers’ sentiment about trade prospects in the future increased. The report cited, “…a much more positive view of the U.S.’s long-run agricultural trade prospects. In May, the percentage of producers who said they expect U.S. agricultural exports to increase over the next 5 years skyrocketed to 52%, up from 33% who responded that way just a month earlier. This was the highest percentage of positive responses received to this question since November 2020.”

Farmers did report that they could have a more difficult time staffing their operations if the Trump administration reduces available immigrants.

Survey Finds Midwest Manufacturing Shrinking

The economies of 10 Midwest states are collectively sinking under the weight of President Donald Trump’s tariffs, according to a monthly survey’s lead author, Dr. Ernie Goss, an economist at Creighton University in Omaha, Nebraska.

The Creighton University Rural Mainstreet Index surveys bank CEOs in 10 states: Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. The findings show continued that farm equipment sales failed to grow for the 21st straight month.

Goss summed up the pessimism among the local banking leaders, “The economic outlook for 2025 farm income remains weak according to bank CEOs. Almost one in four bankers rate tariff retaliation from trading partners as the top risk facing farmers in 2025 while 68.0% ranked lower farm commodity prices as the major risk factor for farmers.”

The slowdown in manufacturing harms rural communities more than urban areas.  

RELATED: Terry Engelken, Vice President of Washington State Bank in Washington, Iowa, is one of the regular respondents in the Creighton University Rural Mainstreet Index. He told American Farmland Owner last December what had him concerned as he talked with local farmers.