For the second month in a row, the April Purdue/CME Group Ag Economy Barometer fell to a 2018 low of 125.
According to the report, the 10-point drop from the March barometer is due in part to a decline in expectations for future economic conditions and a dwindling perception of current conditions.
One of the reasons believed to be the cause of the drop in sentiment is the ongoing trade spat with China.
Producers appear to be more pessimistic about trade, soybean prices, and the challenging times that could be on the horizon for livestock producers.
“Producers are more negative about future ag export prospects,” said Jim Mintert, director of the Center for Commercial Agriculture at Purdue University. “We saw some of that a month ago, but it was exacerbated in this month’s report. The percentage of producers expecting lower exports in the next five years were 17 percent compared to 13 percent a month ago.”
According to Mintert, the decline in sentiment for soybean prices come as there is a potential market loss in China with the current turbulent trade situation between the U.S. and China.
Each month, 400 producers from across the U.S. are surveyed on various aspects of the ag economy.