For the second month in a row, the Ag Economy Barometer declined, this time by 10 points, says Purdue University, based on a survey of 400 producers. Optimism zoomed with President Trump’s election but has been on the decline since peaking at its highest-ever level in January.
“Producers remain more optimistic about the agricultural economy than during all but the last two months of 2016,” said Purdue. “This month’s decline in producer sentiment was driven by weaker expectations about the future.” Fewer farmers expect good times in the ag economy five years from now.
“To the extent that the increase in late fall and early winter optimism was based on expectations of a more relaxed regulatory environment in the future (as reported in the December survey) and possibly a more favorable tax environment, the recent decline could be an indication producers are less confident that expected policy changes will occur rapidly (or at all),” says Purdue.
The home page for the barometer is available here.