Farmers’ outlook dimmed sharply in August as commodity prices dropped amid prospects for bumper crops this fall, according to the Purdue-CME Group Ag Economy Barometer.
The barometer’s overall measure of farmer sentiment fell 13 points from July to a reading of 100, a level common from the fall of 2015 to the winter of 2016, another period of low commodity prices.
The barometer’s index of current conditions fell even more sharply, dropping 17 points to 83. The index of future expectations slid 11 points to 108.
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“Weakening farm income prospects weighed on farmer sentiment as the outlook for a bountiful fall harvest [was] more than offset by declining crop prices,” according to a summary of the barometer. The summary said the drop in the barometer “could indicate that farmers expect this year’s farm income downturn to last for an extended period.”
The August survey was conducted Aug. 12-16. On Aug. 12, futures prices fell after USDA projected record corn and soybean yields this year and sharply raised its forecast for both soybean production and ending stocks.
Some 30% of survey respondents said lower commodity prices were their top concern, up from 20% at the same time last year. But 33% of farmers surveyed in August said high inputs were their highest concern.
In another sign of farmer pessimism, the Purdue-CME barometer’s farm financial performance index fell 9 points to its lowest level July 2020 amid COVID lockdowns.
