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Agricultural producers’ sentiment increased for the second consecutive month, as the Purdue University/CME Group Ag Economy Barometer index rose 5 points to a reading of 115, a 12% increase compared to the previous year. The sentiment growth is largely attributed to farmers’ improved perceptions of their farms’ financial conditions and prospects. This month’s Ag Economy Barometer survey was conducted from Nov. 13-17.
The Index of Current Conditions rose 12 points to 113 while the Index of Future Expectations improved by 2 points to 116. The Farm Financial Performance Index also rose in November to a reading of 95, which is up 3 points from October. The financial index reached its low point back in the spring. The November reading was 25% higher than in May and 10% higher than at the start of fall harvest in September.
“Farmers’ expectations regarding financial performance have improved, with fewer producers’ expecting worse performance than a year ago,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
SOURCE: PURDUE UNIVERSITY
