Farmers’ Interest in Big Purchases Improves Significantly
Farmer sentiment improved again in July as the Ag Economy Barometer jumped to a reading of 153, an increase of 27 points compared to June. The index that measures farmers sentiment related to making large investments enjoyed the biggest two-month upswing since data collection began in 2015.
The Large Farm Investment Index jumped 25 points in July to a reading of 67 vs. 42 a month earlier. Since May, the index improved by 30 points. It is the highest reading for the index since February 2018.
July was the second month in a row that the overall barometer reading rose sharply; it is 52 points higher than in May.
Although both the Index of Current Conditions and the Index of Future Expectations improved during July compared to June, the big driver was producers’ improved perspective on current conditions. The Current Conditions Index rose 44 points in July, the largest one month movement since the barometer’s inception, and 57 points higher than in May.
This month’s Ag Economy Barometer nationwide survey of 400 U.S. agricultural producers was conducted from July 15 through July 19, which was prior to USDA’s announcement of the 2019 Market Facilitation Program.
Source: Purdue University