Producers more optimistic about the ag economy because of income boost
The farm income boost provided by higher commodity prices drove producer sentiment higher in the latest Purdue University/CME Group Ag Economy Barometer.
Jim Mintert is the director of the Purdue Center for Commercial Agriculture.
“Clearly what has taken place in the commodity markets with respect to especially corn, soybean, and wheat prices has really changed the economic picture for many farmers and I think led to the rise in that current condition index and the rise in optimism,” He says.
The overall Ag Economy Barometer rose 7 points to 174. The Index of Current Conditions climbed 15 points to a record high of 202. The Index of Future Expectations rose to 161.
He tells Brownfield farmers are more optimistic because of the improvement in profitability in recent months.
“A little earlier in the fall one of the components of that was the (Coronavirus Food Assistance Program) payments, but that combination with higher crop prices has given a big boost to net farm income and changed the prospects for the 2021 crop as well,” he says.
The monthly national survey of 400 agricultural producers was conducted December 7-11.
Audio: Jim Mintert