Farmer’s slightly more pessimistic about ag economy in December

WEST LAFAYETTE, Ind. — Farmers were less optimistic about the ag economy in December, especially when it came to their long-term outlook, according to the latest reading of the Purdue University/CME Group Ag Economy Barometer.

While the Current Conditions Index remained steady, the Future Expectations Index fell four points from the previous month.

“Even with some stability in expectations for their own operations, producers remain cautious about longer-term decisions,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture.

“Uncertainty surrounding agricultural trade and growing concern about global competitiveness continue to influence how farmers think about the future.”

Specifically, farmers were concerned about the competitiveness of U.S. soybean exports as Brazil expands its role in global markets.

Eighty-four percent of corn and soybean producers said they were concerned or very concerned about the competitiveness of U.S. soybean exports relative to Brazil, with 45% reporting they were very concerned.

Report Highlights

• The Farm Financial Performance Index increased two points to 94.

• Sixty percent of farmers viewed December as a bad time to make large farm investments.

• Farmers remained optimistic about farmland values in December.

• Producers’ confidence in the use of tariffs to strengthen the U.S. agricultural economy continued to decline in December, with 54% of respondents saying tariffs would have a positive effect — down from 58% in October and 59% in November.

Read the complete report at purdue.edu/agbarometer.