Producer sentiment weakens following election
Farmer sentiment weakened following the November election, according to the latest Purdue University/CME Group Ag Economy Barometer.
Jim Mintert, director of Purdue’s Center for Commercial Agriculture, says farmers surveyed expect to see a more restrictive regulatory environment for agriculture.
“In October 41 percent of the people surveyed said they thought the environment regulations were going to get tighter,” he says. “In November that increased to 77 percent.”
He tells Brownfield taxes and farm income are also top concerns.
“The percentage that said they expect to see higher estate taxes or higher income taxes rose to 66 percent,” he says. “When we asked about the farm income safety net, 35 percent said it would be weaker.”
Mintert says the survey responses explain why future expectations of the ag economy weakened following the election.
“I think it reflects some uncertainty, but it also reflects their concern that there could be some change that they don’t think is going to be beneficial for US agriculture,” he says.
The overall Ag Economy Barometer fell 16 points to 167. Although sentiment weakened, it is nearly equal to the pre-pandemic high set in February. The Index of Future Expectations declined to a reading of 156. The Index of Current Conditions rose to 187.
The monthly survey of 400 agricultural producers was conducted November 9-13.
Audio: Jim Mintert