As grain prices continue floundering, farmers attitudes are reflecting the economy.
Purdue University partnered with CME to release their monthly ag economy barometer.
Despite several months of improvements, the likelihood of $3 corn has pushed sentiments south.
Based on a monthly survey of 400 farmers across the U.S., the barometer index fell to 95, down from 112 in July.
According to Purdue economists, the 17 point drop between July and August was the larges one-month decline in their barometer since Nov. 2015.
“At current prices, they’re below profitability levels, no question,” said Alan Hoskins, president and CEO of American Farm Mortgage Company. “What we need to do is sit down with our producers, help them if they don’t already understand breakevens. Help them understand so they can work with their marketing people to lock in opportunities because we still have a long way to go in the pricing of this crop.”
Purdue’s barometer shows crop production margins will be even tighter in 2017 than this year.