Ag Barometer Shows Optimism

Agricultural producers’ sentiment did not change from April to May. The latest reading of the Purdue/CME Group Ag Economy Barometer was 130. The producer sentiment index has hovered near 130 for months. It remains considerably stronger than last fall and a year ago. 

The barometer is based on a monthly survey of 400 U.S. ag producers. 

The barometer’s two sub-indices diverged in May. Producers’ forward-looking expectations improved modestly to 136. The current conditions index, however, fell to 117, a 10-point decline from April. Both subindices remain substantially higher than a year ago, indicating optimism. 

Survey results reveal strong support for renegotiating the NAFTA. Sixty-three percent of producers think a renegotiation would be good for the U.S. economy; 61 percent think it would be good for ag.