COVID-19 Concerns Deflate Farmer Sentiment in Agricultural Economy

WEST LAFAYETTE, IN – Farmers and ranchers have lost optimism in the agricultural economy in the United States, according to the latest data from the April Purdue University-CME Group Ag Economy Barometer. The pessimism comes just two months after the barometer recorded its all-time high in February and is the sentiment of some 400 agricultural producers nationwide. Farmers indicated that, in the current environment, they are reluctant to make large capital investments in their farming operations. Farmers’ pessimism was motivated, in part, by concerns about the impact coronavirus is having on their farms’ profitability and their farming operations. Two-thirds of respondents said they were very worried (39 percent) or fairly worried (28 percent) about the impact of coronavirus on their farms’ profitability this year. Over half (54 percent) said they anticipate applying for one of the federal government’s COVID-19 related financial assistance programs. However, 35 percent of this month’s respondents said they have implemented changes in how they operate their farm in response to coronavirus concerns.