Farmer sentiment drifted lower in December as the Purdue University/CME Group Ag Economy Barometer fell nine points to 136, though that was 22 points (19.3%) above year-ago. The Index of Current Conditions declined 13 points, while the Index of Future Expectations dropped eight points.
The survey noted, “Farmer sentiment weakened in December, with concerns about the current situation on their farms and U.S. agriculture as the primary driver behind the sentiment decline. Although expectations for the future also weakened in December compared to November, it was clear that U.S. producers continued to be markedly more optimistic about the future than they were as recently as September. Expectations among farmers for more favorable regulatory, estate tax and income tax policies over the next several years explain much of the optimism about the future. However, the possibility that a “trade war” could break out that has a negative impact on U.S. agricultural exports is a rising concern among farmers, with more farmers expressing concerns about agricultural trade in December than in November.”
Click here to view the full survey results.