Questions on regenerative agriculture provide new insights into industry perceptions
WEST LAFAYETTE, Ind. — The overall Agrifood Economy Index rose to 94 in December, recovering from August's low of 86, according to the DIAL Ventures December 2024 edition of the Agrifood Economy Index .
The report highlights shifting sentiments across the agrifood industry as stakeholders reflect on economic conditions and future expectations. The overall index score of 94 signals improving sentiment, but it's still below the neutral threshold of 100, indicating persistent industry pessimism.
Future sentiment shows optimism, with the future index climbing to 102. This marks a return to pre-August levels as industry leaders anticipate improved conditions over the next year.
"This report uncovers a growing divide in industry outlooks, with upstream segments like input manufacturers and distributors expressing concerns, while downstream segments remain more optimistic," said DIAL Ventures research manager Lourival Monaco , research assistant professor in agricultural economics at Purdue University and a co-author of the report.
The Agrifood Economic Index, developed by Purdue DIAL Ventures, is a strategic tool designed to measure economic sentiment across the industry. The quarterly survey collected 225 responses from agrifood professionals across 22 states, representing six core industry segments. Sixty-five percent of respondents hold C-level or senior leadership positions, ensuring that the insights reflect the views of key decision-makers.
DIAL Ventures is part of Purdue Applied Research Institute and is dedicated to driving digital innovation in the food and agricultural industry.
"Current conditions remain challenging, with the current index at 89 reflecting short-term market volatility and ongoing concerns over commodity prices and regulatory environments," Monaco noted.
The report's agricultural segment-by-segment analysis covers input manufacturing, input distribution, production, processing and handling, food manufacturing, and support services and products.
Sentiment improved slightly in the agricultural input manufacturing segment, with the segment's index rising by four points to 96. Regulatory pressures and fluctuating commodity prices continue to weigh on the outlook, keeping the index below the optimistic threshold, Monaco said.
The survey also delved into regenerative agriculture, exploring familiarity, adoption support and perspectives on funding responsibility. Profitability ranked as the most important attribute (2.56 on a 7-point scale), underscoring the industry's emphasis on economic sustainability alongside environmental goals.
An overwhelming majority of respondents (82%) reported at least moderate familiarity with regenerative agriculture, and 70% supported its adoption on U.S. farms, highlighting broad industry buy-in.
"The top three terms associated with regenerative agriculture were soil, health and practices, emphasizing a focus on holistic soil management," Monaco noted.
One-third of respondents said they believe that consumers should bear the cost of regenerative agriculture. "Interestingly, 15% suggested that 'all groups' — including consumers, businesses and government — should share funding responsibilities, despite this option not being explicitly provided," Monaco said.
The agricultural input distribution segment saw a six-point increase, reaching 82, but remains the most pessimistic. Supply-chain pressures and low commodity prices persist as major concerns, although there are signs of future optimism with a future index rising to 97.
The agricultural production segment experienced the most significant improvement, with sentiment jumping 22 points to 101, signaling renewed optimism. "Stabilizing commodity prices and post-election policy clarity are driving the positive outlook despite ongoing market uncertainties," Monaco said.
The agricultural processing and handling segment achieved its highest index ever at 110, driven by increased grain movement and favorable margins in feed manufacturing. Both current and future sentiment remain strong, indicating widespread optimism in the sector.
Despite a 10-point improvement to 86, the food manufacturing sector remains in pessimistic territory. "Current conditions are particularly concerning, though future sentiment is more positive, reflecting hope for stabilization amid regulatory and market challenges," Monaco noted.
Sentiment in the support services and products sector continued to decline slightly, with the index reaching 95, driven by near-term pessimism regarding tax changes, government incentives and trade policies. The segment's future index rebounded to a slightly optimistic view, suggesting potential recovery in the medium term.
About Purdue Applied Research Institute
The Purdue Applied Research Institute (PARI) is a nonprofit entity that extends the reach and impact of Purdue University's deep research strengths and top-ranked academic programs in engineering, agriculture, science and technology. PARI works to improve national security, global development, infrastructure solutions and to accelerate critical technologies. Through applied research and program personnel, state-of-the-art facilities and infrastructure, PARI enhances Purdue's ability to translate discoveries into innovative solutions and services for mission-oriented government, industry, NGO and foundation partners. PARI is an incubator for advanced development and transition of leading ideas and technology with potential for significant impact through large-scale prototypes, pilots and startups. https://pari.purdue.edu/
About DIAL Ventures
DIAL Ventures, the agrifood innovation arm of the Purdue Applied Research Institute, tackles big problems facing the U.S. and the world such as food safety, supply chain shortages, sustainability, and environmental impact. DIAL Ventures creates new companies that drive innovation in the agri-food industry which, in turn, makes a positive impact in our lives and lifestyles for years to come. Learn more at dialventures.com .
About Purdue University
Purdue University is a public research university leading with excellence at scale. Ranked among top 10 public universities in the United States, Purdue discovers, disseminates and deploys knowledge with a quality and at a scale second to none. More than 107,000 students study at Purdue across multiple campuses, locations and modalities, including more than 58,000 at our main campus in West Lafayette and Indianapolis. Committed to affordability and accessibility, Purdue's main campus has frozen tuition 13 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap — including its comprehensive urban expansion, the Mitch Daniels School of Business, Purdue Computes and the One Health initiative — at https://www.purdue.edu/president/strategic-initiatives .
Writer: Steve Koppes
