US Farmer Sentiment Recovers on Rising Crop Prices

US farmer sentiment rebounded in May amid rising crop prices and a decent start to the 2024 planting season. 

The May reading of the Purdue University-CME Group Ag Economy Barometer - which is based on a survey of 400 producers across the country and was conducted May 13 –17 - came in at 108 points, up 9 points compared to April. 

Strengthening crop prices was a factor in this month’s sentiment improvement. For example, eastern Corn Belt cash corn prices in mid-May were 6 to 7% higher than when the April survey was conducted, while cash soybean prices improved by 2 to 3% over the same period. The improvement in prices coincided with good corn and soybean planting progress as USDA reported the planting pace in mid-May matched the five-year average. 

Farmer sentiment plunged in April, with the barometer dropping 15 points from March to its lowest since June 2022 at 99 points. Much of the farmer pessimism in April was attributed to producer concern about their current financial situation and expectations for weak financial performance in the year ahead.   

However, strengthening crop prices since then has apparently lifted some dark clouds for farmers. 

Meanwhile, the May barometer also further confirmed increasing farmer interest in leasing land for solar projects. 

In both the April and May surveys approximately 20% of survey respondents said they had discussed leasing farmland for solar energy production in the last six months, up from just 12% in March. Like April’s survey results, over half (55%) of respondents said they were offered a long-term lease rate of $1,000/acre or more, and 27% said they were offered more than $1,250/acre. Combining results from both the April and May barometer surveys, approximately 30% of respondents who have discussed leasing with a company have signed a solar energy lease on farmland they control, the barometer said.