Ag Economy Barometer Falls to Lowest Point Since 2016 Election

June 5, 2019 04:05 PM
 
 

Trade tensions and poor planting weather driving farmer sentiments to multi-year lows in May. That's according to the latest Ag Economy Barometer from Purdue University and the CME Group.

In a nationwide survey of 400 farmers, the index falling to 101. That's 14 points lower than April and the lowest reading since October of 2016.

Driving those declines are falling sentiments around current conditions and future expectations. Economists say the drop has now erased all of the gains since the November 2016 elections. Much of the erosion, due to falling prospects for a trade deal with China. 

May Ag Barometer

"Farmers are becoming somewhat less optimistic that the trade dispute with China will ultimately be resolved in a way that's beneficial to U.S. Agriculture," said Jim Mintert, with the Center for Food & Agricultural Business at Purdue University. "When we asked them about that back in March, I think 77 percent said that they expected a favorable outcome."

May China Optimism

He says in April, that declined to 71 percent and on the May survey, 65 percent said they expected to see a favorable outcome in the long run.

"A majority of farmers still expect a favorable outcome, but it's a smaller majority than what we were seeing back in the winter," says Mintert.

The index on making large capital investments for the farm fell to a reading of 37. That's the second month in the row it's declined and is the lowest ever since data started being collected in the fall of 2015.

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Comments

 
Spell Check

Keith
aug, ME
6/7/2019 07:35 AM
 

  You loyal blinded trump minions go right on and keep supporting your narcissistic egocentric president and see where we end up. Heck even most conservatives with half a brain knows this guy is off balance and is dangerous with sharp instruments and national policy decisions. The guy who said we should be more like China, so he could stay in office for life and believe me he was more than just half joking. Go on keep supporting him and voting for him. You deserve every economic hardship that comes your way and you'll get no more sympathy from tax payers most whom are what you like to refer to as demtards! It's a well-known fact that liberal-leaning states contribute much more in taxes than the conservative states who benefit more from those taxes than the liberal states paying the most: "High-tax, traditionally Democratic states (blue), subsidize low-tax, traditionally Republican states (red) — in a big way." Chew on that for a while!

 
 
vince Moye
NEC Iowa, IA
6/8/2019 07:16 AM
 

  Why is it that the 'right leaning' personally attack the 'left leaning' and the 'left leaning ' only attack the 'right leanings' views on issues and assumptions. Mean populists can only get us into a war among ourselves, taking down everyone.

 
 
Billy Bob
New York , NY
6/8/2019 06:32 AM
 

  Keith you just keep loving those demtards you are not supporting no Republican states. YOUR high taxes are going to pay for all of the give it away Bernie and the rest of the demtards that are running for President. LISTEN to their campaign ads you can get anything you want for free if you vote for them. That I think that is the Democrats only way to get votes. So you keep telling your self you are supporting the Republican if that makes you feel better.

 
 

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