Ag producer sentiment rebounded in June as farmers’ expressed a more optimistic outlook about the future of the ag economy.
The Purdue University/CME Group Ag Economy Barometer, based on a mid-month survey of 400 agricultural producers across the U.S., increased to a reading of 126 in June, up 25 points from May.
Increases were also seen in both of the barometer’s sub-indices. While the Index of Current Conditions only saw a modest increase, up 13 points from May, to a reading of 97, the Index of Future Expectations jumped 33 points, to a reading of 141 in June.
“This year farmers have faced an extremely wet planting season and uncertainty surrounding trade discussions, however, a crop price rally coupled with USDA’s announcement of its 2019 MFP program and Congress’ passage of the Disaster Aid Bill made farmers more optimistic,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “While this combination provided a boost to a struggling ag economy, it remains a challenging economic environment for farmers.”
In June, the prospect of large prevented plantings, along with concerns that delayed planting of corn and soybeans would impact yields, led USDA to forecast tighter supplies than previously expected. Supply concerns were a key factor behind a rally in corn and soybean prices that took place from mid-May to mid-June when the June barometer survey was conducted.