Ag Barometer Shows Optimism About Current Conditions At Highest Level Recorded

Jan 19, 2021

American farmers continue to be more optimistic about their current situation even during an ongoing pandemic. The December Purdue Ag Economy Barometer survey results reflect improvements in trade and government aid.

Indices of Current Conditions and Future Expectations

When initially faced with the coronavirus, farmers' short-term confidence reached a record low with ethanol production down and supply chain issues.

Nine months later, optimism among agricultural producers about their current economic conditions hit the highest level since the survey began in 2015. Purdue University agricultural economics professor and barometer co-author Michael Langemeier said there are two reasons for that.

“And that's, for obvious reasons, is very strong government payments, in 2020, but also a very large increase in prices, particularly corn and soybean prices from early September all the way through December,” said Langemeier.

A record number of respondents said they are more inclined to make farm capital investments. About 25 percent more compared to November expect farmland values to increase within the next year.

The barometer’s December 2020 responses also show American farmers continue to worry over the future of agricultural production with the incoming Biden administration.

Concerns remain over changes to environmental and tax policies that would affect the industry and could hurt them economically.

China’s imports increased towards the end of 2020, raising prices of corn and soybeans. But survey respondents remained less optimistic than prior to the November elections that a trade deal beneficial to American farmers will be made with China.

Langemeier said that’s to be expected.

Click here to see more...

Video: Veteran Farmers: A Legacy of Service in Rural America

Veterans Day is a time to honor the men and women who have selflessly protected our freedoms and values. And for some, the transition from military service to civilian life brings them back to the farm.

At Farm Bureau, we believe it’s important to not only celebrate veterans but also those who continue to make a difference in agriculture and their community. We've partnered with Farm Credit to establish the Veteran Farmer Award of Excellence to shine a light on those who have continued to go above and beyond to serve their communities.

This year, we recognize retired Colonel Joe Ricker as the inaugural Veteran Farmer Award of Excellence winner. Joe served over 30 years in the Army before retiring from the Pentagon and completing tours in both Iraq and Afghanistan. Since leaving the Army, his commitment to excellence in farming and enriching the lives of veterans has blossomed in a myriad of ways in both his local community of Wilkinson, Indiana, and across the country. Joe grows apples and raises bees on his farm in Indiana. Joe founded “Veterans IN Farming,” an organization, now with more than 1,100 members, dedicated to providing veterans in Indiana with the tools and training to succeed in agriculture.

The American Farm Bureau Federation is an independent, non-governmental, voluntary organization, comprised of and directed by farm and ranch families who engage in all types of food, fuel and fiber production.