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Farmer sentiment is up because of crop prices and CFAP2
A rise in crop prices and the news of a second round of CFAP payments strengthened farmer sentiment, according to the latest Ag Economy Barometer.
Jim Mintert is the director of the Purdue Center for Commercial Agriculture.
“Crop prices have recovered substantially, USDA released the details regarding the CFAP2 program, and then for people that are in the midst of harvesting corn and soybeans, the yield reports have been positive,” he says.
The Purdue University/CME Group Ag Economy Barometer rose 12 points to 156 in September. The Index of Current Conditions rose 18 points to 142 and the Index of Future Expectations was up nine points to 163.
He tells Brownfield farmers are also more optimistic about making large investments in their farming operations.
“(Farmers surveyed) are a little more willing to make investments in their farming operation and a little more willing to consider making purchases on the farm machinery side than they were just a few months ago,” he says.
Mintert says producer sentiment was also up regarding farmland values.
“You go back to last April and roughly one third of people surveyed expected farmland values to decline in the upcoming year and in this survey we were down to just 12 percent said they expect them to decline,” he says.
The monthly survey of 400 US agricultural producers was conducted September 21-25.
Audio: Jim Mintert
