Farmer sentiment remained weak last month as the Purdue University/CME Group Ag Economy Barometer fell two points below its May reading. The national survey of farmer’s economic outlook, conducted by the Purdue Center for Commercial Agriculture, fell to a reading of 97.
The barometer is primarily based on two sub-indices that measure future expectations and current conditions.
The Index of Future Expectations declined five points to a reading of 96, the lowest level since October 2016. Purdue economists say rising costs and uncertainty about the future continue to be a drag on farmer sentiment.
The Current Conditions Index of 99 was five points higher than in May. However, Purdue says the small improvement in current conditions was more than offset by weaker expectations of the future.
Purdue says 51% of survey respondents this month said they expect their farms to be worse off financially a year from now, the most negative response received to this question since data collection began in 2015.