By Ryan Hanrahan
World-Grain’s Arvin Donley reported that “US farmers are concerned about current economic conditions but are optimistic about the long-term outlook of the agricultural economy, according to survey results released on Oct. 7 by Purdue University and the CME Group.”
“Their monthly Ag Economy Barometer Index rose by one point to 126 after falling for three straight months. However, there was a shift in producers’ perceptions of current conditions and their expectations for the future,” Donley reported. “The Index of Current Conditions fell 7 points to 122, while the Index of Future Expectations climbed 5 points to 128.”
“The survey was conducted following the US Department of Agriculture’s (USDA) release of the September Crop Production report and the World Agricultural Supply and Demand Estimates report. These reflected farmers’ concerns about current conditions, particularly over record-high corn and soybean yields, which were pressuring crop prices,” Donley reported. “At the same time, optimism about the future was supported by farmers’ belief that US policy is ‘headed in the right direction’ and by expectations that potential government support, like the 2019 Market Facilitation Program (MFP), will provide payments to farmers in compensation for lower commodity prices.”
Source : illinois.edu