Farmer sentiment improved in May following a sharp decline in April, according to Purdue’s Ag Economy Barometer. May’s reading of 108 was a 9 point improvement from April. Producers reported improvements in both the Current Conditions Index and Index of Future Expectations.

Producers' plans for machinery purchases remained stable, but the majority still say their plans for equipment purchases are lower in the upcoming year compared to a year ago. The percentage of producers who said their plans were lower or higher both dropped compared to April.

Rising interest rates continue to be the primary reason producers say it’s a bad time to make large investments at 44%, followed by the increasing price of farm machinery and new construction at 29%.

As to reasons it is a good time to make large investments, 45% of producers who felt like it was a good time credited higher dealer inventories. Another 25% said it was due to strong cash flows.

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