About the Ag Economy Barometer
The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy. On the first Tuesday of each month, the Ag Economy Barometer provides a sense of the agricultural economy’s health with an index value. The index is based on a survey of 400 agricultural producers on economic sentiment each month. Quarterly, the index is accompanied by an in-depth survey of 100 agriculture and agribusiness thought leaders.
As CME Group’s roots are in agriculture, and Purdue University’s Center for Commercial Agriculture has a long history of producing cutting-edge agricultural research, this partnership is designed to create a new and important tool for producers, economists, traders, finance industry professionals and journalists who are interested in understanding the agriculture industry and the broader global economy.
Find the Ag Economy Barometer on the Bloomberg Terminal: AGECBARO, AGECCURC and AGECFTEX.
The Purdue University-CME Group Ag Economy Barometer Index climbed to 139 in November, 10 points higher than in October and the highest barometer reading since June of this year. The improvement in farmer sentiment was attributable to producers’ more optimistic outlook for the future, as the November Future Expectations Index reading of 144 was 15 points higher than in October.
Read the Full ReportThere was a modest uptick in U.S. farmer sentiment in October as the Purdue University-CME Group Ag Economy Barometer index of 129 was 3 points higher than September’s reading. The slight rise in the barometer was fueled primarily by an increase in the Index of Current Conditions. Farmer’s appraisal of current conditions on their farms continues to be a tale of two economies – livestock vs crop sectors.
Read the Full ReportLevels of non-real estate farm lending at commercial banks remained high in the fourth quarter of 2015 despite a modest decline from a year earlier. Loans used to finance current operating expenses remained at record levels, while volumes for most other types of non-real estate loans declined slightly. As farm income declined again in 2015, persistently high short-term lending needs amplified concerns about farm sector liquidity moving into 2016, especially if farmers’ profit margins remain low. Despite these concerns, agricultural banks continued to report strong loan performance and solid returns on their assets.
A quarterly newsletter on agricultural land values and credit conditions, based on data from the Bank’s survey.
The outlook for the pork industry has turned somewhat more optimistic in recent weeks. The sources of that optimism include a $2 to $4 increase in spring and summer lean hog futures prices since the first of the year and slightly lower new-crop soybean meal prices. A bit higher hog prices and a little lower cost add to the potential for a profitable year.