Producer sentiment improved sharply in December as the Purdue University-CME Group Ag Economy Barometer Index reading of 126 was 24 points higher than a month earlier. Although U.S. farmers were more positive regarding both the current situation and the future, the biggest improvement was in their assessment of current conditions. The Current Conditions Index reached 135, 37 points higher than in November, while the Future Expectations Index hit 122, 18 points above a month earlier. The improvement in current sentiment was motivated by producers’ stronger perception of current financial conditions on their farms as the Farm Financial Performance Index climbed 18 points above the prior month’s reading to reach 109, which was the only time in 2022 that the index was above 100. The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated monthly from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from December 5-9, 2022.