The November general election stands as a dividing point between pessimism and optimism among farmers about the future of the agricultural economy, says a Purdue poll. The Ag Economy Barometer, produced monthly by Purdue, is now at its highest reading ever, 132, in a dramatic surge since October, when it was at its second-lowest mark, 92, since the survey began in October 2015.
“The contrast in sentiment from the October survey — three weeks prior to the U.S. elections — and the December survey — five weeks after the elections — is remarkable,” said David Widmar, senior research associate. Corn and soybean futures prices were relatively stable during the period, so they are not a likely explanation for the change. Rural America voted 2-to-1 for President-elect Donald Trump in November. Widmar said the rise in producer optimism was paralleled by a rise in consumer sentiment following the election.
In the Purdue survey of 400 producers, half of respondents say they expect the U.S. economy to expand over the coming year. Only 13 percent held that view in October. For all the cheer, “it’s important to be cognizant of the fact that nearly two-thirds of the producers surveyed indicated that the financial conditions of their farming operations were worse in December 2016 than a year earlier,” said Purdue. And only 32 percent of respondents said they believed they would be better off financially a year from now.
To read the Purdue report, click here.