With 2019 History, Farmers More Optimistic About Future

WEST LAFAYETTE, IN – There was a sharp rise in agricultural producer sentiment last month as the Purdue University/CME Group Ag Economy Barometer rose 17 points from December (to a reading of 167). Although the Index of Current Conditions was essentially unchanged, the Index of Future Expectations jumped significantly. The sentiment improvement took place as the Phase One Trade Agreement between the U.S. and China was being discussed and signed in mid-January. The Ag Economy Barometer is based on a mid-month survey of 400 U.S. agricultural producers. The signing of the Phase One trade agreement between China and the U.S. did appear to provide a boost in sentiment among producers. For example, in January, 69 percent of farmers surveyed felt that the trade dispute would be settled soon and 80 percent felt that the outcome will be favorable to U.S. agriculture. At the same time, producers’ expectations for an increase in U.S. agricultural exports over the next five years has also steadily improved.