Farmers less optimistic about ag economy in June

WEST LAFAYETTE, Ind. — Farmers were less optimistic about the ag economy in June, according to the Purdue University/CME Group Ag Economy Barometer, which dropped 12 points.

A drop in optimism about future agricultural exports seems to have influenced producers’ weakened outlook.

Even with the declines, farmers are more optimistic than a year ago.

“Reduced optimism about the future of U.S. agriculture’s export prospects stands out as a major cause of the shift in sentiment,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture.

“Although farmers remain concerned that U.S. tariff policies will reduce their income, fewer producers in May and June said they expect a negative or very negative impact on their income than they did in March and April.”

Report Highlights

• From May to June, the percentage of producers who said they expect increasing agricultural exports over the next five years dropped to 41% from 52%. The percentage of respondents who expect declining exports rose 4 points to 16%.

• The Farm Capital Investment Index rose 5 points from May. The percentage of farmers who said it’s a good time to invest reached 24%, up from 19% in May.

• The Farm Financial Performance Index dropped 5 points to 104, with producers projecting a slightly weaker financial outlook for their farms in June than in May.

• The Short-Term Farmland Value Expectations Index fell 4 points to 120 in June, signaling cautious optimism.

Read the complete report at purdue.edu/agbarometer.