According to the June Purdue University-CME Group Ag Economy Barometer, farmers were less pessimistic about their farms’ financial performance in June than they were in April and May of this year, but they were noticeably more negative than in early spring 2019.
The most recent Ag Economy Barometer from Purdue University and CME Group asked for farmers’ thoughts on the future of farmer equity and the U.S. ethanol industry with the majority of responses showing strong concern for both.
Farmer sentiment improved slightly in May after falling sharply in both March and April. The Purdue University-CME Group Ag Economy Barometer reading in May was 103, up 7 points from the April reading of 96. The barometer’s small improvement left the gauge of farmer sentiment nearly 40% below its February peak of 168.
For the second month in a row, the Purdue University-CME Group Ag Economy Barometer dropped sharply, falling 25 points in April to a reading of 96. This marks the first time the barometer has fallen below 100 since October 2016.
Farmer’s perception of an improving ag economy going forward could be laying the groundwork for increased capital investments in the year ahead, according to the results of the Purdue University-CME monthly farmer survey.
The Ag Economy Barometer rose to a reading of 167 in January, a 17-point jump from December when the index stood at 150. Virtually all of the rise in this month’s barometer was attributable to a sharp rise in optimism about future conditions in agriculture.
The Ag Economy Barometer drifted sideways in December, to a reading of 150 compared to 153 in November. Although the barometer changed little in December, there was a shift in producers’ perspective regarding both their farms’ and the production ag sector’s economic health.
The Purdue/CME Ag Economy Barometer rose in November for the second month in a row, climbing to 153, 17 points higher than in October when the index stood at 136. This month’s rise in the ag economy sentiment index left the barometer tied with July for the highest barometer reading of 2019.
Farmers were less pessimistic in October than they were in September concerning the U.S.-China trade war. In October, 51% of respondents said that resolution soon was unlikely, which was down from a reading of 59% in September and 71% in August.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.