Farmer sentiment improved markedly in August as the Purdue University-CME Group Ag Economy Barometer rose to a reading of 144, 26 points higher than a month earlier. The improvement in producer sentiment was the result of improved perceptions regarding current conditions and, especially, better expectations for the future. The Index of Current Conditions rose 13 points in August to a reading of 124 while the Index of Future Expectations rose 33 points to a reading of 154.

It’s difficult finding anything positive coming out of the COVID-19 pandemic, but it appears the stay-at-home/work-from-home directives are pumping up the sales of small farm machinery.

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 improved to a reading of 136 in October, up 15 points compared to September, which pushed the barometer back to the same level observed in October 2018. This month’s upswing in the ag economy sentiment index was driven by an improvement in ag producers’ assessments of both current and future economic conditions in agriculture.

The Purdue/CME Group Ag Economy Barometer for September 2019 shows that farmer sentiments about current and future economic conditions differ decidedly. According to Purdue researchers, the Ag Economy Barometer dipped slightly in September to a reading of 121, down just 3 points from August, when the index stood at 124.

Although both the Index of Current Conditions and the Index of Future Expectations improved during July compared to a month earlier, the big driver of the overall sentiment improvement was producers’ improved perspective on current conditions.

The Purdue University/CME Group Ag Economy Barometer declined moderately in December to 127, which was 7 points below the index’s value one month earlier and 9 points below October’s reading.