Producer sentiment up in latest Purdue poll

U.S. farmer attitudes toward the agricultural economy this year were among their most optimistic in November, new data shows.

The monthly Purdue University/CME Group Ag Economy Barometer, which is based on a mid-month survey of 400 U.S. crop and livestock producers, showed a reading of 153 in November, tying with the high previously set in July.

Producers indicated they expect economic conditions to continue improving going forward: The Index of Current Conditions rose 38 points to 153, and the Index of Futures Expectations rose seven points to 153.

“Except in the northern Corn Belt, farmers were wrapping up their fall harvest in November, and yields were better than expected earlier this year, which helped boost sentiment, along with news that the trade dispute [with China] might be settled soon,” James Mintert, the barometer’s principal investigator and director of Purdue’s Center for Commercial Agriculture, said in a press release. “Since early fall, cattle prices also rallied substantially, helping make both cattle ranchers and feeders feel better about their operations’ finances.”

Producers’ optimism about making investments also improved during November. The Farm Capital Investment Index rose to 71, its highest since February 2018. It coincided with the rise in the current conditions index, indicating that as farmers’ perspectives of their farm’s current situation improved, they were more inclined to make farm capital expenditures.

Most poll respondents also said they expect a resolution to the U.S.-China trade dispute soon, and many expect the final deal will favor U.S. agriculture.