Ag Economy Barometer: Farmer Optimism Beginning to Fade

(WEST LAFAYETTE, IN) The Purdue University/CME Group Ag Economy Barometer reading declined in August as farmers’ expectations for both current and future economic conditions took a tumble. The Index of Current Conditions and the Index of Future Expectations, two subindices, fell in August compared to a month earlier. Sharp declines in most commodity prices during July and early August weighed heavily on farmer sentiment. While USDA’s announcement of the Market Facilitation Program (MFP) payment rates did help alleviate concerns about 2019 income for many farmers, the big decline in Future Expectations indicates farmers are becoming more concerned about the future for agricultural trade. The barometer is based on a mid-month survey of 400 agricultural producers across the U.S. and was conducted between August 12 and August 20, 2019, with nearly all of this month’s responses collected following USDA’s release of the August 12 Crop Production report. Over two-thirds (71 percent) of respondents feel the MFP program will either “completely or somewhat relieve” their concerns about the impact of tariffs on 2019 farm income.