Purdue University's CME Group Ag Economy Barometer index fell 12 points to 140, down from 152 last month, due to an overall grower weaker expectation for the future.

Each month, the university surveys 400 farmers across the country on their thoughts on the agricultural economy. This month, the survey was conducted from March 10 to 14. 

The Current Conditions Index fell 5 points to 132, lower than last month but still 37 points higher than it was back in October. The Future Expectation Index, the main culprit behind the drop, fell 15 points to 144, 20 points higher than it was in October. 

The director of the Center for Commercial Agriculture, Dr. Michael Langemeier, said he wasn't surprised to see a drop in sentiment, attributing it mainly to the imminent threat of tariffs and a decline in ag commodity prices, especially in corn and soybean. 

"I wasn’t surprised that it dropped, and I’m not that surprised that it dropped as much as it did," the Director said. "I thought maybe it dropped a little bit more even, but I was a little surprised that we didn’t take more off the Index of Current Conditions."

The Farm Capital Investment Index also fell 5 points to 54, and although it's a decline, it's the second highest investment reading the university has seen since June of 2021.

According to James Mintert, emeritus professor of agricultural economics at Purdue University, last month capital investmnet index was the highest since the aforementioned date. 

The Farm Financial Performance Index also fell this month, dropping eight points to 102, with strong financial performance among livestock operations but weak expectations for crop farms.

The measurement, according to the university, "suggests producers, on average, still expect their farm’s financial performance to slightly exceed the level from a year ago." 

The report clearly states that trade is top of the list for the U.S. agricultural industry since the November 2024 election. 

"Since the November election, concern about trade policy has skyrocketed, with 43% of respondents, on average, citing it as the most important policy or program affecting their farm. That compares to an average of 13% of farmers since the election who pointed to interest rate policy as most important."