Farmer sentiment about the agricultural economy has reached its lowest level in eight years, according to the latest Ag Economy Barometer from Purdue University and the CME Group.
Farmers are “concerned about commodity prices, input costs, the future of agricultural trade and how the upcoming election could affect their farm operations,” says the latest report, based on interviews with 400 producers from Sept. 9-13.
Producers’ declining income expectations helped push farmer sentiment down again in September. The overall index fell 12 points to 88. Both the barometer's subindices, the Index of Current Conditions and the Index of Future Expectations, also declined.
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The Current Conditions Index fell 7 points to 76, and the Future Expectations Index dropped 14 points to 94. “These were the weakest barometer and future expectations readings since March 2016, when the farm economy was in the throes of an economic downturn,” the report said.
Thirty-four percent of farmers surveyed called input prices their top concern; 33% said their biggest worry is lower output prices.
Farmers also are worried about export prospects. In September, “just 26% of respondents reported that they expect U.S. agricultural exports to rise over the next five years. Dating back to 2019, when this question was first posed, this was the least optimistic perspective offered by farmers regarding agricultural exports in a barometer survey,” the report said.
In a related question, 78% of producers said they are concerned that a new administration will impose policy changes that affect their farms.
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