OMAHA (DTN) -- U.S. farmer optimism in November reached its highest level since May 2021, yet some of agriculture's biggest employers are announcing massive layoffs and idling production facilities.

The latest release looking at farmer sentiment from the Purdue University/CME Group Ag Economy Barometer shows farmers' outlook shot up 37 points in November following the election of President-elect Donald Trump.

Meanwhile, a pattern of job layoffs, plant idling and lower profits continue for major agribusinesses. Commodity giant Cargill, the country's largest privately held company, on Tuesday announced the company would cut approximately 5% of its workforce, an estimated 8,000 people, as profit margins are coming down.

"To strengthen Cargill's impact, we must realign our talent and resources to align with our strategy," Cargill officials stated. "Unfortunately, that means reducing our global workforce by approximately 5%. This difficult decision was not made lightly. We will lean on our core value of putting people first as we support our colleagues during this transition."

Reuters reported an internal memo from Cargill CEO Brian Sikes stated most of the cuts will be announced before the end of the year. That includes about 475 corporate jobs in Minnesota.

Cargill's revenue fell 36% this year, according to Bloomberg, coming after two record-breaking profit years at the company.

Cargill isn't the sole commodity company with lower earnings. Rival ADM in mid-November also announced overall operating profit year-to-date was down 32% compared to 2023. ADM's AgServices and Oilseed division profits were down 42%, year over year.

Cargill's layoffs come just as Tyson Foods announced it will shut down a value-added processing plant in Emporia, Kansas, in February that will result in 809 jobs lost. Tyson continues cutting back operations in certain states, which included closing a pork plant in Perry, Iowa, last summer that cost nearly 1,300 jobs.

The economic impact extends beyond these closures. The Iowa Farm Bureau Federation last month released an analysis showing Iowa had seen 11,400 jobs lost across 23 agricultural businesses and a reduction in $1.5 billion in economic activity. Along with the closing of the Tyson plant in Perry, Farm Bureau pointed to job cuts at John Deere and the closing of the Pure Prairie Poultry plant in September.

FARMER SENTIMENT UP

The November Purdue/CME survey cited farmers had a "notably more positive outlook for their operations and the broader agricultural economy than in prior months."

The percentage of producers expecting their farm finances to improve over the next year rose from 19% in October to 33% in November, Purdue stated.

"Looking ahead five years, over half of November's respondents (52%) predicted widespread prosperity for U.S. agriculture, a noticeable increase from 34% the previous month," the Purdue/CME report stated.

The change in sentiment comes with more producers expecting a stronger agricultural economy in 2025. After the election, farmers shifted their attitudes with fewer farmers expecting tighter regulations while 55% of farmers expect "a more favorable, less restrictive regulatory landscape."

Still, farmers also expressed concerns about potential risks to agricultural trade. The survey cited 42% of farmers in November indicated it is "likely" or "very likely" that the U.S. could face a trade war.

During the past few weeks, Trump has repeatedly made it clear he wants to use tariffs to bring other countries to heel. During the weekend, Trump threated 100% tariffs on Brazil, Russia, India, China and South Africa, known as the BRICS alliance, if those countries move to replace the dollar as their trade currency. Trump also has called on tariffs against Canada and Mexico over border disputes and drug enforcement.

See, "Tyson Foods to Close Kansas Meatpacking Plant; 809 Employees to Lose Jobs," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

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