USA: Farmer sentiment sours as crop prices decline

Published 2023년 6월 8일

Tridge summary

The Purdue University/CME Group Ag Economy Barometer has reported a significant drop in producer sentiment to its lowest since July 2022, with a 19-point decline to 104 in May. This decrease is largely attributed to a weakened crop market and uncertainty around crop prices. The Index of Future Expectations also saw a 22-point decrease to 98, while the Index of Current Conditions fell by 13 points to 116. The decline in sentiment is further driven by concerns over rising input costs, potential lower crop and livestock prices, and the impact of U.S. bank failures. Additionally, the survey found that a growing number of farmers expect weaker financial performance for their farms this year, with concerns over rising interest rates and fallacious short-term farmland value expectations.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to the latest Purdue University/CME Group Ag Economy Barometer, producer sentiment fell to its weakest reading since July 2022. Farmer sentiment declined 19 points to a reading of 104 in May. The Index of Future Expectations was down 22 points to a reading of 98 in May, while the Index of Current Conditions declined 13 points to a reading of 116, according to a news release. The month’s lower sentiment was fueled by drops in both of the barometer’s sub-indices and likely triggered by weakened crop prices, according to the report. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between May 15-19. “Producers are feeling the squeeze from weakened crop prices, which has reduced their expectations for strong financial performance in the coming year,” James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial ...

Source: Fruitgrowersnews