Purdue University/CME Group’s Ag Economy Barometer Index rose 17 points in June to a reading of 121. The upswing in farmer sentiment was driven by producers’ more optimistic view of the future. However, their perception of current conditions remained unchanged from May.
The Index of Future Expectations rose 25 points to 123, while the Index of Current Conditions held flat at 116 in June. Optimism about U.S. agriculture’s future and a more optimistic outlook on interest rates helped explain producers’ more positive view of the future in the June survey. But current conditions continue to present challenges for some producers. This month, four out of ten producers stated that their financial situation has deteriorated compared to a year ago.
The Farm Financial Performance Index also rose this month, up ten points from May. The Farm Capital Investment Index rose five points in June to 42, while optimism on farmland values also rose.