Farmer Economy Outlook Continues to Improve
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowFarmer sentiment improved in June for the second month in a row, according to a Purdue University/CME Group Ag Economy Barometer.
The monthly measurement of farmer’s outlook of the farm economy increased by 14 points.
The Ag Economy Barometer is based on responses from 400 U.S. agricultural producers.
In both March and April, the reading took deep dives due to economic uncertainty stemming from the pandemic.
Farmers became more optimistic about both their current situation and the future for their farming operations compared to a month earlier.
The barometer findings show farmers are more inclined to think that now is a good time to make large investments in machinery and buildings than they were in either April or May.
The Farm Capital Investment Index recovered to a reading of 60 in June, 10 points higher than a month earlier and 22 points higher than the low reached in April.
Purdue agricultural economists say a more favorable spring planting season combined with assistance available from the federal Coronavirus Food Assistance Program (CFAP) helped explain this month’s improvement in farmer sentiment.
Purdue Center for Commercial Agriculture Director Jim Mintert shows the highlights of the June report in the video below.