Ag Economy Barometer Shows Some Optimism

Farmer sentiment improved again in June as the Purdue University-CME Group Ag Economy Barometer rose 14 points to 117. The barometer’s rise was fueled by improvements in both the Index of Current Conditions, which rose to a reading of 99, 19 percent higher than a month earlier, and the Index of Future Expectations, which climbed to 126, 12 percent higher than in May. The improvement in farmer sentiment left the Ag Economy Barometer seven percent below one year earlier, while the Index of Future Expectations was still ten percent below its June 2019 level. However, the Index of Current Conditions was two percent higher than in June 2019, likely reflecting considerably improved spring planting conditions throughout much of the nation, in addition to support from USDA’s Coronavirus Food Assistance Program. Four out of ten farmers surveyed said that as a result of concerns about COVID-19, they are conducting more business online, and over half of respondents said they are less likely to attend in-person educational events in 2020.