Farmer Economic Outlook Improves
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThere was a big improvement in farmer sentiment in August, according to the Purdue University/CME Group Ag Economy Barometer. The index rose to a reading of 144, up 26 points from July.
Both of the barometer’s sub-indices also recorded substantial increases. The Index of Current Conditions improved to a reading of 124, up 13 points from July, while the Index of Future Expectations improved to a reading of 154, up 33 points.
Purdue’s Center for Commercial Agriculture says the increases in the three categories marked the most positive readings since February 2020 when record highs were established and before the pandemic began.
The improvement in sentiment was underpinned by expectations for excellent crop yields, as reported in the USDA’s August Crop Production report, and rallies in key agriculture commodity prices that took place this month amidst news of additional export sales to China.
The Ag Economy Barometer is based on survey responses from 400 U.S. agricultural producers.
In the video below, Jim Mintert, the director for Purdue’s Center for Commercial Agriculture gives insight to farmers’ perspectives regarding land values, U.S. agriculture’s trade prospects, and farmers’ equity position over the upcoming year.