Farmer sentiment rises amid positive future outlook
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Ag producers are reporting a more optimistic view of the future, according to the most recent Purdue University/CME Group Ag Economy Barometer. However, the university notes that farmers’ perception of current conditions remains unchanged.
The barometer is calculated monthly from a telephone survey of 400 agricultural producers across the country. The newest survey was conducted June 12-16, and saw the barometer rise 17 points to 121.
“Optimism about U.S. agriculture’s future and a more sanguine interest rate outlook help explain producers’ more positive view of the future expressed in June’s survey; however current conditions in the farming economy continue to present a challenge for some producers,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Mintert noted that four out of 10 producers said last month that their financial situation has deteriorated compared to a year ago.
In June, 20% of respondents said they expected their financial condition to improve over the next year, compared to just 13% in May. Meanwhile, only 32% expected their farm’s financial situation to decline over the upcoming year, compared to 44% in May.
Purdue said the farmers’ improved perspective on the future extends to all of U.S. agriculture and not just their own farms.
The barometer’s two sub-indices, the Farm Financial Performance Index and Farm Capital Investment Index, rose 10 and five points, respectively, last month. Purdue said a late rally in harvest-time prices for corn and soybeans led to an increase in optimism among producers, though nearly 75% still said now is a bad time to make large investments in their farming operations.
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