Farmer Optimism Improves on Rally in Crop Prices

WEST LAFAYETTE, IN – There was a modest improvement in producer sentiment according to the December Purdue University/CME Group Ag Economy Barometer. The barometer increased 7 points from November to a reading of 174 and both of the barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations, were also higher in December compared to November.

The rise in the Ag Economy Barometer was primarily driven by farmers’ perception that the current situation on their farms really improved.

The sharp rise in the Index of Current Conditions is correlated with the farm income boost provided by the ongoing rally in crop prices, which appears to be the driving force behind increasing optimism.

The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from December 7-11, 2020.
(SOURCE: All Ag News)