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Ag Economy Barometer: farmer sentiment held mostly steady

Ag producers are slightly less optimistic about current conditions, according to the latest Purdue University/CME Group Ag Economy Barometer.

Jim Mintert is the director of the Purdue Center for Commercial Agriculture.

“There was a six-point decline in the index of current conditions, and I think a chunk of that was related to the fact that prices have softened relative to where they were earlier in the spring,” he says.  “And, even though those prices are still elevated from a longer-term perspective, when you think about it from sentiment, you have a tendency to compare back to where prices were just a few months ago and so I think, from a sentiment standpoint, that explains softness we’re seeing there.”

After a two-month decline, the overall Ag Economy Barometer held steady at a reading of 134. That’s above the reading seen at this time last year and is in line with readings seen from 2017 through 2019 when annual average barometer readings ranged from 131-133. This month’s Index of Future Expectations was 130, down two points from the previous month.

Farmers surveyed are a little more optimistic about their farm’s financial performance. The Farm Performance Index rose 3 points to 99. That’s 28 percent below its April peak, but up 43 percent compared to July 2020. Producers were more optimistic when prices for corn, soybeans, and wheat were rising in the fall, winter, and early spring, but recent sentiment suggests farmers remain cautiously optimistic about financial conditions on their farm.

The monthly national survey of 400 U.S. ag producers was conducted July 19-23.

Audio: Jim Mintert