The Ag Economy Barometer dropped to its second-lowest reading of 2017, pulled down by pessimism about conditions in the coming year, says Purdue University, which bases the barometer on its monthly poll of 400 producers. Some 62 percent of respondents said they expect “bad times” over the next 12 months.
“The percentage of producers expecting bad times for the agricultural economy has been increasing since July, when it hit a summertime low of 50 percent. At the same time, the percentage of producers expecting good times for the agricultural economy in the upcoming year dipped to 28 percent in November, down from 35 percent in October,” said Purdue. The poll found that 62 percent of producers— the highest percentage since the survey began in 2015 — believe land values will hold steady over the coming year; last spring, about 45 percent expected land values to decline.
The overall barometer reading of 128 was down by 7 points from the preceding month and the lowest in eight months. The March reading of 124 was the lowest of the year. The ag barometer combines producers’ sentiments about current conditions and their expectations for the near future. The barometer soared last fall and peaked at 153 in January. It has ranged from 124 to 139 for most of this year.
To read the Ag Economy Barometer, click here.