Pandemic Sends Ag Economy Barometer Downward

The Purdue University/CME Group Ag Economy Barometer recorded its largest one-month drop in sentiment during March. The barometer dipped 47 points to a reading of 121, as concerns over the impact of the global pandemic on the agricultural economy weighed heavily on farmers’ minds.

Both the Index of Current Conditions and Index of Future Expectations also recorded their largest one-month declines. Farmer sentiment regarding current conditions fell 43 points to a reading of 111 and future expectations fell 49 points to a reading of 126. Collectively, this month’s decline in the barometer and its sub-indices pushed the index down to levels last seen in September 2019.

Seventy-four percent of respondents to the March survey said they were either “fairly worried” (34 percent) or “very worried” (40 percent) about the impact of the virus on their farm’s profitability this year. That sentiment crept into their perceptions of financial performance, with 40 percent of respondents expecting a worse year compared to 2019.

The Farm Capital Investment Index fell 18 points to a reading of 54.

The Ag Economy Barometer is based on a mid-month survey of 400 U.S. agricultural producers and was conducted from March 16 to 20 as the coronavirus crisis escalated in the U.S. and around the world.

See the complete March report.