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Farmer optimism celebrates spring

Producer perspective on farm financial position continues to improve, which appears to be fueling some of the short-term optimism about farmland values and capital investments. The Farm Financial Performance Index is based on responses to a question that asks producers, “As of today, do you expect your farm’s financial performance to be better than, worse than or about the same as last year?” The question was first posed in April 2018 and asked again in spring 2019. Since late 2019 the question has been posed more regularly. The index bottomed out in April 2020, at a reading of 55. It then started to climb during the summer, reaching a December reading of 116. Since December the index has increased each month. In March it hit a record of 125, an increase from 121 a month earlier and from 117 in December.

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