Trade Instability Weighs on Farmers

Agricultural producer sentiment in September dropped to its lowest level since October 2016, according to the latest Purdue University/CME Group Ag Economy Barometer reading.

The September barometer reading was 114, down 15 points since August. The barometer is based on a monthly survey of 400 agricultural producers from across the country.

The barometer assesses farmers’ perceptions of current conditions and their expectations of the future. The current conditions index fell by 25 percent. The future expectations index declined by 10 percent.

“The barometer readings have been unusually volatile over the past few months,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “Concerns about the ongoing impact of trade conflicts, and especially China’s tariffs on imports of U.S. ag products, continue to reverberate throughout the U.S. agricultural sector.”

In response to a survey question about whether now is a good time to make large investments in farm machinery and other capital improvements, 78 percent of respondents said it was a bad time to make large investments.