Purdue University's Ag Economy Barometer, an index based on a monthly survey of 400 agricultural producers on economic sentiment accompanied by an in-depth survey of 100 agriculture and agribusiness thought leaders, rose 5 points in January. 

The increase was driven by a growth in what the university calls the "Current Conditions Index and a 3-point rise in the Future Expectations Index," thanks to higher crop prices between December and mid-January and fewer producers citing crop and livestock prices as a top concern.

The Farm Financial Performance Index also climbed in January due to producers anticipating a more robust financial year.

The Farm Capital Investment Index remained unchanged from December, but despite no change, the investment index remains significantly higher than last summer's 31, and is the second-highest reading of the past three years.

Despite the positivity, agricultural trade remains a top concern for United States farmers, and the barometer showed a slight increase in the percentage of producers anticipating larger loans this year. The increase of 3%, from 15% in 2024 to 18%, can be attributed mostly to farmers carrying over unpaid debt from last year. 

Purdue reports that "23% attributed it to carrying over unpaid operating debt from the previous year, compared to 17% last year and just 5% two years ago."

This, the university reports, "reflects a decline in farm income, "particularly crop income, over the past two years and could be an early signal of rising financial stress among producers."