Optimism for American Agriculture Highest in 4 Years: Farmer Survey

The Trump administration is in the process of signing trade deals to boost U.S. agricultural exports.

A farmer cultivates a corn field at Mencer Farms in Lake Village, Ark., on April 29, 2025. Samira Bouaou/The Epoch Times

Farmer sentiment in the United States jumped in May from the previous month, with producers expressing a more optimistic view of American agriculture trade prospects, Purdue University said in a June 3 statement.

The Purdue University-CME Group Ag Economy Barometer index hit 158 last month, up by 10 points from April, and has now recorded the highest level since May 2021. The index measures producer sentiment to gauge the overall health of the U.S. agricultural economy and is based on a survey conducted among 400 agricultural producers.

“Farmers were more optimistic about both current conditions and their expectations for the future as the Current Conditions Index improved by 5 points to 146 and the Future Expectations Index jumped 12 points to 164,” the statement reads.

“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.”

In May, 52 percent of producers said they expected agricultural exports to rise over the next five years, a massive increase compared to 33 percent just a month earlier. This is also the highest percentage of positive responses to this question since November 2020.

The Farm Financial Performance Index jumped by eight points in May, suggesting that farmers are expecting higher income in 2025 than in 2024.

As for tariffs, the share of producers who expect the U.S. tariff policy to have a negative or very negative impact on their farms’ income this year fell to 43 percent in May from 56 percent in April.

Washington is currently engaged in trade talks with several countries, seeking agriculture deals among other negotiations.

A delegation of Vietnamese businesses, on a visit to the United States until June 7, is expected to sign agreements to purchase $2 billion worth of U.S. farm produce.

In May, the United States reached a trade deal with the UK. During a May 8 press conference, President Donald Trump said that the arrangement includes “billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all of the products produced by our great farmers.”

According to data from the Department of Agriculture, the top 10 American food exports in 2024 were soybeans, corn, beef and beef products, tree nuts, pork and pork products, dairy products, soybean meal, food preparations, wheat, and poultry meat and meat products. These food items combined made up 57 percent of U.S. agricultural export values.

The biggest markets for U.S. food products are East Asia, led by China, South Korea, and Japan. Canada, Mexico, and Southeast Asia are other major markets.

In fiscal year 2024, the United States imported $206.2 billion worth of agricultural products and exported $174.4 billion, leading to an agricultural trade deficit of $31.8 billion.

Protecting Farmers

Lawmakers have introduced measures to boost agricultural productivity in the United States.

In May, a bipartisan group of senators introduced the Agriculture Innovation Act to improve the Department of Agriculture’s (USDA) data collection procedures regarding conservation and production practices, the Senate Committee on Agriculture, Nutrition, and Forestry said in a May 14 statement.

“As the economic backbone of rural communities across our state, farmers and producers need the most up-to-date resources possible to inform their operations,” Sen. Amy Klobuchar (D-Minn.), one of the lawmakers who introduced the bill, said in the statement.

“This bipartisan legislation will provide farmers with better access to comprehensive USDA data, ensuring they are able to use the most effective conservation practices for boosting productivity and improving crop yield.”

Meanwhile, Republicans are pushing forward with the One Big Beautiful Bill Act that contains favorable provisions for the agriculture sector.

The bill provides “immediate tax relief” for farmers, ranchers, and other small businesses, according to a fact sheet.

It prevents “the Death Tax from hitting over 2 million family-owned farms,” ensuring that family-owned farms and ranches “can be passed down to the next generation.”

Death taxes, imposed by federal and state governments on an individual’s estate upon that person’s death, are applied to beneficiaries who inherit the estate.

The bill makes certain small business deductions permanent, benefiting farms across the United States. The tax provisions in the bill are expected to reduce overall taxes on farmers by more than $10 billion.

“Swift passage of this bill will take a critical step toward revitalizing the agricultural economy and supporting rural America during these challenging times,” the Agricultural Retailers Association said, according to a May 21 statement from the House Committee on Ways and Means.

“This legislation strengthens the farm safety net, ensures essential investments in conservation, and includes tax provisions that offer much-needed relief to family farms and agribusinesses.”