WEST LAFAYETTE, IN – Farmer sentiment was virtually unchanged in July in comparison to a month earlier, according to the latest Purdue University/CME Group Ag Economy Barometer. The index rose just one point from June to a reading of 118, still 30 percent lower than in February before the pandemic began impacting the agricultural economy.
Although there was little change in the July barometer, producers’ perspective on current versus future conditions shifted. The Index of Current Conditions rose 12 points from June to a reading of 111, and the Index of Future Expectations fell five points from June to a reading of 121.
Thirty-eight percent of producers reported they plan to keep machinery purchases about the same as last year, which was also unchanged from June but seven points higher than in May.
Although overall farmer sentiment in July did not change much compared to June, the sentiment was still much weaker than in February before the impact of coronavirus hit. In July, farmers indicated they were a bit less concerned about the current economic situation on their farms than earlier this spring, but they were less optimistic about the future, perhaps as a result of the recent resurgence in COVID-19 cases.
(SOURCE: Purdue Center for Commercial Agriculture)