<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=2BwaFF_0vYEK4i900" alt="https://img.particlenews.com/image.php?url=2BwaFF_0vYEK4i900" width="1152" height="836" ><figcaption>Graphic courtesy Purdue University/CME Group</figcaption></figure>In a sharp turnaround from July, farmer sentiment nose-dived in August.The August Purdue University-CME Group Ag Economy Barometer fell 13 points vs. July, leaving the index at 100, while the Index of Current Conditions fell 17 points to 83 and the Index of Futures Expectations shed 11 points to a reading of 108.Weakening farm income prospects weighed on farmer sentiment as the outlook for a bountiful fall harvest was more than offset by declining crop prices, according to a university news release.This month’s decline in the barometer takes farmer sentiment back to the average level observed from fall 2015 to winter 2016, a period when farm incomes were declining sharply.The weakness in farmer sentiment could indicate that farmers expect this year’s farm income downturn to last for an extended period.<h2>People are also reading…</h2>Data collection for the August survey took place from Aug. 12-16.Over the last several months, farmers’ concerns about weakening commodity prices have become more evident in barometer surveys.In the August survey, producers’ concerns about commodity prices nearly eclipsed what has consistently been their top concern — high input prices.This month, 30% of respondents picked lower commodity prices as a top concern compared to 33% who chose high input costs. This was a marked departure from a year earlier when just 20% of survey respondents pointed to weak commodity prices as a top concern for their farm operation.At the same time, fewer respondents chose rising interest rates as a top concern. This month, 17% of respondents pointed to interest rates as a top issue, down from 24% a year ago.In a related question, two-thirds (68%) of respondents said they expect interest rates to fall during the upcoming year, while only 19% said they look for rates to rise.</div></body>

Mountain View, CA

NewsBreak

Ag Barometer: Weakening income prospects weigh on farmers’ outlook

In a sharp turnaround from July, farmer sentiment nose-dived in August. The August Purdue University-CME Group Ag Economy Barometer fell 13 points vs. July, leaving the index at 100, while the Index of Current Conditions fell 17 points to 83 and the Index of Futures Expectations shed 11 points to a reading of 108.

Ag Barometer: Weakening income prospects weigh on farmers’ outlook

Comments / 0