Farmer sentiment rebounded in June as the Purdue University-CME Group Ag Economy Barometer rose 17 points to a reading of 121.
June’s sentiment improvement left the index near the April reading of 123 after a one-month swoon in May.
The contrast in producers’ perspectives on current conditions versus future expectations was made clear when examining responses to individual questions in the June survey.
- When asked to compare their farm operation’s situation today with a year ago, 40% of respondents said their operation was “worse off” financially than a year earlier versus 37% who felt that way in May while just 15% chose “better off” versus 17% who made that choice in May.
- When asked to look ahead one year, respondents’ attitudes changed. In June, 20% of respondents said they expected their financial condition to improve over the next year, compared to just 13% who said that in May.
- Meanwhile 32% expect their farm’s financial situation to decline over the upcoming year, compared to 44% who responded that way in May.
Producers improved perspective on the future was not focused solely on their own farms, but extended to all of U.S. agriculture.
- The percentage of producers expecting good times for U.S. agriculture in the upcoming 5 years rose 8 points to 33% while the percentage expecting bad times fell 3 points to 41%.
The more optimistic view of the future held by respondents was reflected across the board as the Farm Financial Conditions, Short and Long-Term Farmland Value Expectations, and Farm Capital Investment indices all improved in June compared to May. Looking ahead, one-fourth of corn/soybean producers said they expect farmland cash rental rates to rise in 2024.
