Source: James Mintert and Michael Langemeier, Purdue Center for Commercial Agriculture
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Farmer sentiment rebounded in June as the Purdue University-CME Group Ag Economy Barometer rose 17 points to a reading of 121. June’s sentiment improvement left the index near the April reading of 123 after a one-month swoon in May. The swing in sentiment was driven by producers’ more optimistic view of the future as the Index of Future Expectations rose 25 points to 123, while their perception of the current situation was unchanged. The Index of Current Conditions reading, at 116, was the same as in May. This month’s Ag Economy Barometer survey was conducted from June 12-16, 2023.
The contrast in producers’ perspectives on current conditions vs. future expectations was made clear when examining responses to individual questions in the June survey. When asked to compare their farm operation’s situation today with a year ago, 40% of respondents said their operation was “worse off” financially than a year earlier vs. 37% who felt that way in May while just 15% chose “better off” vs. 17% who made that choice in May. But when asked to look ahead one year, respondents’ attitudes changed. In June, 20% of respondents said they expected their financial condition to improve over the next year, compared to just 13% who said that in May. Meanwhile 32% expect their farm’s financial situation to decline over the upcoming year, compared to 44% who responded that way in May. Producers improved perspective on the future was not focused solely on their own farms, but extended to all of U.S. agriculture. The percentage of producers expecting good times for U.S. agriculture in the upcoming 5 years rose 8 points to 33% while the percentage expecting bad times fell 3 points to 41%.
