Ag Economy Barometer Soars to Six Month High

WEST LAFAYETTE, IN – The Purdue University/CME Group Ag Economy Barometer rose 12 points in March to a reading of 177, marking the highest reading for the barometer since October 2020. The rise, according to Dr. Jim Mintert Director of the Center for Commercial Agriculture, was attributed to a more optimistic view of the future by farmers and ranchers. The Index of Future Expectations snapped a four-month decline, rising 16 points to a reading of 164 in March. The Index of Current Conditions tied with its previous all-time high, increasing two points to a reading of 202. Even with a rebound in crop production in 2021, it looks like carryover supplies of corn and soybeans will remain tight and that seems to be providing producer confidence that crop prices will remain strong throughout this year. Additionally, expectations for a smaller pork supply combined with a rebound that appears to be on the horizon for the U.S. economy this summer are providing some optimism in the livestock sector. 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 the week of March 22, 2021.
(SOURCE: All Ag News)