On July 5, the Purdue University/CME Group Ag Economy Barometer released its June report showing sentiment improved during the month, rising 17 points to a reading of 121 — a stark difference from the previous month’s barometer reading. The group says the upswing in sentiment “was driven by producers’ more optimistic view of the future; however, their perception of current conditions remained unchanged from May.” Due to weakened crop prices, May’s reading was one of the weakest readings since July 2022.
“Optimism about U.S. agriculture’s future and a more sanguine interest rate outlook help explain producers’ more positive view of the future expressed in June’s survey; however current conditions in the farming economy continue to present a challenge for some producers,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture, in the release. “This month four out of 10 producers stated that their financial situation has deteriorated compared to a year ago.”
Researchers compared the large month-to-month swing in producers’ expectations for the future. According to the release, in June, 20% of respondents said they expected their financial condition to improve over the next year, compared to the 13% who responded that way in May. In addition, only 32% expected their farm’s financial situation to decline over the next year, compared to the 44% who responded that way in May.
“Producers’ improved perspective on the future was not focused solely on their own farms, but extended to all of U.S. agriculture,” the release added. “The percentage of producers expecting good times for U.S. agriculture in the next five years rose eight points to 33%, while the percentage of producers expecting bad times fell three points to 41%.”
Make sure to read the full report.
