Barometer: Farmers more optimistic about yields, crop prices, and trade
Farmer sentiment improved considerably this month according to the latest Purdue University/CME Group Ag Economy Barometer.
Jim Mintert, director of Purdue’s Center for Commercial Agriculture, says there are several reasons for that increase…”If you compare this year versus last year, people are expecting, with some exceptions, better yields on the crop side than what we were looking at last year,” he says. “Secondly, if you look at prices for all the major commodities and compare them to late July/early August, during the month of August prices improved.”
He tells Brownfield farmers are also more optimistic about trade with China.
“There were more sales to China showing up in late July and continuing in August and I think that has created some optimism,” he says. “In fact, to put that into perspective, two thirds of the respondents this month say they expect exports to increase over the next five years.”
The Ag Economy Barometer rose 26 points to 144. The index of Current Conditions rose 13 points to 124 and the Index of Future Expectations rose 33 points to a reading of 154.
The monthly survey of 400 US agricultural producers was conducted August 17-21.
Audio: Jim Mintert