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Farmer sentiment declines due to trade uncertainty

An ag economist says ongoing trade uncertainty led to a decline in the latest Purdue University/CME Group Ag Economy Barometer.

Professor emeritus Jim Mintert with Purdue’s Center for Commercial Agriculture says farmers are less optimistic about the future.

“I think that decline, that loss of optimism about future ag export prospects really explains the change that we saw in that index of future expectations, and in turn was the driving factor behind the change in the barometer itself,” he says.

He tells Brownfield producers remain concerned trade tensions could impact their bottom line.

“People are still concerned about the possibility of a negative impact on farm income because of tariffs, but a little less so in both May and June than what we saw in March and April,” he says. “Longer term growth in the ag sector in the US historically has been strongly correlated with growth in exports.”

Mintert says the center will continue to monitor how new trade developments in the coming months could further impact farmer sentiment.

AUDIO: Jim Mintert, Purdue University