Fall harvest boosts US producer sentiment

The Purdue University/CME Group Ag Economy Barometer improved 15 points to a reading of 136 in October. The upswing is attributable to 15-point increases in both of the barometer’s sub-indices.
calendar icon 6 November 2019
clock icon 5 minute read

Since last spring, Purdue researchers have been tracing producers’ perceptions regarding the soybean trade dispute between the US and China­ - specifically, whether they think the dispute will be resolved soon and the outcome will ultimately benefit US agriculture. In October, 51 percent of respondents said that an imminent resolution was unlikely, which is down from a reading of 59 percent in September and 71 percent in August. At the same time, 75 percent of farmers in the October survey said they expect the final outcome will ultimately prove beneficial to US agriculture. October marked the fourth month in a row that over 70 percent of producers said they expected a beneficial outcome to the trade dispute.

Farmers were more optimistic about farmland values increasing, and less inclined to think cash rental rates would decline, than in September. When asked to look ahead in the farmland market, both 12 months and 5 years into the future, more producers said they expect farmland values to increase. Meanwhile, just 14 percent of producers expect cash rental rates to decline in the upcoming year compared to 22 percent who thought a decline likely when surveyed in September. The Farm Capital Investment Index also saw an uptick, rising 12 points in October, after a two-month decline, as farmers were more favourably disposed toward making large investments in their farming operations.

Farmer sentiment on trade and the overall ag economy improves as fall harvest gets underway
Farmer sentiment on trade and the overall ag economy improves as fall harvest gets underway

© Purdue/CME Group Ag Economy Barometer/James Mintert

Farmer sentiment on trade and the overall ag economy improves as fall harvest gets underway
Farmer sentiment on trade and the overall ag economy improves as fall harvest gets underway

© Purdue/CME Group Ag Economy Barometer/James Mintert

Since last spring, Purdue researchers have been tracing producers’ perceptions regarding the soybean trade dispute between the US and China­ - specifically, whether they think the dispute will be resolved soon and the outcome will ultimately benefit US agriculture. In October, 51 percent of respondents said that an imminent resolution was unlikely, which is down from a reading of 59 percent in September and 71 percent in August. At the same time, 75 percent of farmers in the October survey said they expect the final outcome will ultimately prove beneficial to US agriculture. October marked the fourth month in a row that over 70 percent of producers said they expected a beneficial outcome to the trade dispute.

Farmers were more optimistic about farmland values increasing, and less inclined to think cash rental rates would decline, than in September. When asked to look ahead in the farmland market, both 12 months and 5 years into the future, more producers said they expect farmland values to increase. Meanwhile, just 14 percent of producers expect cash rental rates to decline in the upcoming year compared to 22 percent who thought a decline likely when surveyed in September. The Farm Capital Investment Index also saw an uptick, rising 12 points in October, after a two-month decline, as farmers were more favourably disposed toward making large investments in their farming operations.

The Pig Site Editor

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.