Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   

Agricultural News


Farmer Sentiment Hits Lowest Level in Over Two Years Declining 14 Points in May to Reading of 101

Wed, 05 Jun 2019 10:03:32 CDT

Farmer Sentiment Hits Lowest Level in Over Two Years Declining 14 Points in May to Reading of 101 Ag producer sentiment dropped to its lowest level since October 2016, erasing all improvements recorded following the November 2016 election. The Purdue University/CME Group Ag Economy Barometer, based on a mid-month survey of 400 agricultural producers across the U.S., declined 14 points in May to a reading of 101, down from 115 in April.


The decline in the barometer came about because producers' perspectives on both current and future economic conditions worsened considerably compared to a month earlier. The Index of Current Conditions fell to a reading of 84, down from 99, and the Index of Future Expectations fell to 108, down from 123.


"Ag producers are telling us the agricultural economy weakened considerably this spring as the barometer has fallen 42 points (29%) since the start of this year," said James Mintert, the barometer's principal investigator and director of Purdue University's Center for Commercial Agriculture. "Farmers are facing tough decisions in the midst of a wet planting season and a lot of uncertainty surrounding trade discussions."


The Large Farm Investment Index, which measures producers' attitudes toward making large investments in their farming operation, has ebbed and flowed over the past year; however, since the beginning of 2019, the index has trended significantly lower. In May, just 18% of farmers stated it was a "good time" to make large farm investments while 81% stated it was a "bad time," pushing the investment index down to a reading of 37. This is the lowest Large Farm Investment Index reading since the Ag Economy Barometer's October 2015 inception.


Farmers' optimism toward short- and long-term farmland values has also waned since the early part of 2019. For example, the percentage of farmers that expect farmland values to decline over the course of the upcoming year jumped from 21% in January to 25% in March and most recently to 30% in May. Looking farther ahead, just 39% of producers said they expect farmland values to rise over the next five years, compared to 48% expecting rising values in the March survey.
Agricultural trade continues to be a source of concern for producers. For the past three months, producers were asked whether they expect the soybean trade dispute with China to be resolved by July 1 and whether they feel the resolution will benefit U.S. agriculture. When the question was first posed in March, 45% of respondents expected the dispute to be resolved by July 1; that number declined to 28% in April and fell further to 20% in May. Regarding whether they ultimately expect an outcome favorable to U.S. agriculture, 77% said yes in March, which declined to 71% in April, and fell further to 65% in May.


"At this time, a majority of producers still expect a favorable outcome for agriculture to the trade dispute," said Mintert, "but that majority appears to be shrinking."


Read the full May Ag Economy Barometer report at https://purdue.ag/agbarometer. This month's report includes more information about each of the survey questions, as well as a look into farmers' perceptions toward their equity positions. The site also offers additional resources such as past reports, charts and survey methodology and a form to sign up for monthly barometer email updates and webinars. Each month, Dr. Mintert also provides an in-depth video analysis of the barometer, available at https://purdue.ag/barometervideo.


Source - Purdue University Center for Commercial Agriculture / CME Group




   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Oklahoma Youth Expo Sale of Champions Sale Order Available Here- Sale Set for 4 PM Friday  Fri, 17 Mar 2023 04:50:54 CDT
  • Rural Voters Dominated Vote to Defeat Recreational Marijuana March 7th  Fri, 10 Mar 2023 07:13:05 CST
  • Ron Hays Talks to Israeli Ag Tour Guide Colin Lotzof About the Miraclel of Ag in Israel  Wed, 22 Feb 2023 22:11:04 CST
  • OALP Members Experience First Hand View of Cutting Edge Drip Irrigation Technology as Israel Travel Ends  Wed, 22 Feb 2023 10:51:49 CST
  • OALP Members Get First Hand View of Cutting Edge Drip Irrigation Technology as Israel Travel Ends  Wed, 22 Feb 2023 10:50:10 CST
  • Oklahoma Ag Leadership Program Sees Fruit, Beef and Dairy Production North of the Sea of Galilee in Israel  Mon, 20 Feb 2023 21:56:02 CST
  • Oklahoma Ag Leadership Program Sees Diverse Farm Operations in Jordan River Valley of Israel  Sun, 19 Feb 2023 21:17:30 CST
  • Israeli Tour Guide Mark Kedem Talks About The Cultural Aspects of What Class XX of OALP is Experiencing   Sat, 18 Feb 2023 22:17:23 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Oklahoma City Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.
       
       
       
       
       

    Search OklahomaFarmReport.com

    © 2008-2024 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.