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Farmers becoming less optimistic about future of the ag economy

The latest Purdue University/CME Group Ag Economy Barometer shows farmers continue to be concerned about the ag economy.

Michael Langemeier, director of Purdue’s Center for Commercial Agriculture, says the survey was taken when the September supply and demand report was released, and it contributed to the weaker outlook.

“About 70 percent of those we survey are crop producers,” he says. “When you look at the net returns in the crop sector, they’re not very good right now. We expected that group to be relatively pessimistic, drawing down that index of current conditions.”

He tells Brownfield producers aren’t as optimistic about trade.

“Fifty-two percent said the trade policy we’re currently engaging in is going to strengthen agriculture in the long run,” he says. “When we asked that question back in May, 70 percent thought that the current trade policy was going to strengthen U.S. agriculture.”

Langemeier says he’s watching how new policy developments and the recent government shutdown could impact sentiment in next month’s survey.

AUDIO: Michael Langemeier, Purdue University