Optimism in the livestock sector was the driving force behind improving farmer sentiment, according to a recent update of the Purdue/CME Group Ag Economy Barometer.

Farmer sentiment in October increased by three points from September to 129 on the index. The increase was fueled by an eight-point increase on the Index of Current Conditions to 130, while the Index of Future Expectations rose by only one point.

With record prices and profitability for beef, livestock producers ranked their current optimism high. Crop farmers remained more pessimistic, with lower prices minimizing profit margins across all major crops.

With the USDA considering possible payments to farmers to compensate for low commodity prices, similar to its 2019 Market Facilitation Program, the survey asked respondents to also share how they would use such a payment. More than half said they would use the money to reduce their debt, and 25 percent said they would use it to improve their operation’s working capital. 

Policy uncertainty also continued to impact farmer sentiment, with the percentage of farmers who said they were uncertain about the impact of new tariffs on the agricultural economy (16 percent) still double that percentage six months ago in April (8 percent). Despite this, 72 percent of respondents believe the U.S. is generally headed in the right direction.

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