Indiana’s agriculture sector is not optimistic about its future.
This is according to the latest Purdue University/CME Group Ag Economy Barometer, which dropped 16 points to 167 in November, down from its all-time high of 183 in October. Purdue researchers believe the reading, which was based on a survey taken after the election between Nov. 9 and Nov. 13, fell because survey respondents became more uncertain about taxes and regulations moving forward.
The decrease in sentiment was led by farmers' more pessimistic view towards the future of the agricultural economy with the Index of Future Expectations falling 30 points to a reading of 156 in November. However, the on-going rally in commodity prices continued to support producers' view of current economic conditions as the Index of Current Conditions rose 9 points in November to 187, an all-time high for that index.
The Ag Economy Barometer is calculated monthly from 400 U.S. agricultural producers' responses to a telephone survey.
Producers were more pessimistic about future economic conditions on their farms in November than they were just a month earlier, which is the opposite of what happened following the November 2016 election, Purdue University said.
Comparing results from October to November, more producers in November said in the next five years, they expect to see: environmental regulations impacting agriculture to tighten; higher income tax rates for farms and ranches; higher estate tax rates for farms and ranches; less government support for the U.S. ethanol industry and a weaker farm income safety net provided by U.S. government program policies.
