Farmers Showing Optimism in Latest Ag Economy Barometer

Farmers were more optimistic in August, as the Purdue University-CME Group Ag Economy Barometer rose to a reading of 144, 26 points higher than a month earlier. Organizers say the improvement resulted from improved perceptions regarding current conditions and better expectations for the future. The Index of Current Conditions rose 13 points in August to 124 while the Index of Future Expectations rose 33 points to 154. This month’s improvement was underpinned by expectations for excellent crop yields, as indicated in the Department of Agriculture’s August Crop Production report, and nearly across the board rallies in key ag commodity prices in August. The barometer and its two sub-indices all posted their most positive readings since February 2020, when record highs were established and before the coronavirus pandemic began. Producers also indicated they were more optimistic about agricultural exports increasing than in recent months, perhaps due to recent news about additional export sales to China.