Declining Attitudes in August Ag Economy Barometer

September 7, 2016 12:50 PM

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.

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Spell Check

9/7/2016 09:26 PM

  I agree with Edward.

Edward Smalley
Salem, IL
9/7/2016 07:21 PM

  At the beginning of this growing season I told our local Farm Bureau secretary that we would all be better off leaving 25% of our acres idle and carry out conservation programs and maintenance on the acres instead of planting it. Looks like that would have been a good plan... Farmer's, wake up, we are doing this to ourselves, we all would have been better off cutting back. Now, we are going to have to harvest and loose on every acre. The traders, suppliers and everyone connected with our endeavors will all come out smelling like a rose and we will be deeper in the hole. What is wrong with this picture. Cutting our production is the only way to get prices to where they need to be.. Back in the early70's there was a slogan " feed the world". we did, we grew so much in the next few years that we all about went broke then. History will repeat itself if we don't take control and prevent it from happening again. Think I am crazy---- take a look at what we are facing now and how run away production is putting us deeper in the hole. Just because there are hungry people in the world doesn't mean that the governments that control these populations are going to buy the grain from us to feed them. That was the secret truth about "feed the world" in the early 70's. Some of us are still around that can remember this.

hendrum, MN
9/7/2016 09:31 PM

  The NFO proposed "Collective Bargaining" back in the 60's where farmers would band together to control price and supply of agricultural commodities. Didn't work then and won't work now. Farmers are independent by nature and will not adhere to a marketing order of supply and price control. I think a more practical approach to survive lean times is cost control. Don't be the guy who bids up land costs in your area


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