Farmers, who are piling up grain and hoping for higher prices, are more optimistic about the future than the present ag economy, according to a recent survey by the Purdue/CME Group's latest Ag Economy Barometer.
Farmers rated livestock prospects even higher on the survey. Barometer readings have a total range of 0 (completely unfavorable) to 200 (completely favorable). Any reading above 100 is considered positive - and that's where farmers have bearly landed for September, with the barometer rising six points to 101.
Although farmers are slightly more bullish than they were a month ago, most respondents say they don't actually expect widespread prosperity right now for crops or livestock. That's according to Jim Mintertt, the barometer's principal investigator and director of Purdue's Center for Commercial Agriculture.
"These results suggest not only that demand for storage this fall will be very strong, but also that producers expect positive storage returns for their fall 2016 crops," he says.
Four other key takeaways from the survey include:
1. Farmers plan to store more of their crops than usual.
2. Expectations for profits from livestock production have fallen by 4% compared to a year ago.
3. Farmers are surveyed on both current conditions and expectations of future conditions. These values came in at 83 and 109, respectively.
4. More than 40% of farmers surveyed have priced less of this year's crop than they would in a typical year.
For more information, visit purdue.edu/agbarometer.