Latest Purdue/CME Group Ag Barometer Turns South

(WEST LAFAYETTE, IN) Farmers became much more pessimistic about current conditions on their own farms and in the U.S. agricultural economy in late summer, according to the September Purdue University/CME Group Ag Economy Barometer. While the overall reading dipped slightly to a reading of 121, down three points from August; the Index of Current Conditions, a sub-index of the barometer, dropped 22 points to a reading of 100. The barometer is based on a mid-month survey of 400 agricultural producers. Farmers’ outlook toward making large investments such as machinery or building also declined in September. The Farm Capital Investment Index dropped for the second consecutive month, down nine points from August, which left it 20 points below July when corn and soybean prices were peaking. Producers’ farmland value expectations for both the next 12 months and the next five years also drifted lower in September.