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Ag Economy Barometer hits record high
Farmer sentiment hit a new record high in October because of the rally in commodity prices, above average yields, and coronavirus assistance, according to the latest Purdue University/CME Group Ag Economy Barometer.
Jim Mintert is the director for the Purdue Center for Commercial Agriculture.
“You put the strength in price together with strong yields, and that obviously boosts the revenue situation and makes people feel a lot better,” he says. “The third component was the fact that in October the second round of the Coronavirus Food Assistance Program payments became available.”
The barometer climbed 27 points to 183. The Index of Future Expectations rose 23 points to 186 and the Index of Current Conditions jumped 36 points to 178.
He tells Brownfield many producers say they are more optimistic today about the financial condition of their farms compared to a year ago.
“Twenty-five percent of the respondents said the farm’s financial performance was better today than it was 12 months ago,” he says. “Previously the highest percentage we had ever gotten to respond to that question favorably was 16 percent…I think that really confirms how good people were feeling about their current situation of their farming operation today.”
Mintert says it has been a volatile year for the Ag Economy Barometer. The barometer had a reading of 168 in February and then dropped to a low of 96 in April because of the pandemic. The October reading of 183 is the highest the barometer has been since the survey began in 2015.
The monthly survey of 400 U.S. agricultural producers was conducted Oct. 19-23.
Audio: Jim Mintert
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