{"id":4229,"date":"2020-03-03T10:28:00","date_gmt":"2020-03-03T14:28:00","guid":{"rendered":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/?p=4229"},"modified":"2020-03-03T10:29:13","modified_gmt":"2020-03-03T14:29:13","slug":"optimism-about-current-conditions-pushes-farmer-sentiment-index-to-all-time-high-2","status":"publish","type":"post","link":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/optimism-about-current-conditions-pushes-farmer-sentiment-index-to-all-time-high-2\/","title":{"rendered":"Optimism about current conditions pushes farmer sentiment index to all-time high"},"content":{"rendered":"\n<p>WEST LAFAYETTE, Ind. and CHICAGO \u2013 Producers\u2019 perception of improved current conditions in the agricultural economy pushed the <a href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/\">Purdue University\/CME Group Ag Economy Barometer<\/a> to all-time record highs. The barometer rose to 168 in February, an increase of one point from January, and was up 18 points since December.<\/p>\n<div id=\"attachment_4239\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4239\" class=\"wp-image-4239 size-medium\" src=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/03\/AgEconomyBarometer_Feb2020-300x217.jpg\" alt=\"Optimism about current conditions pushes farmer sentiment index to all-time high. (Purdue\/CME Group Ag Economy Barometer\/James Mintert)\" width=\"300\" height=\"217\" srcset=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/03\/AgEconomyBarometer_Feb2020-300x217.jpg 300w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/03\/AgEconomyBarometer_Feb2020-1024x742.jpg 1024w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/03\/AgEconomyBarometer_Feb2020-768x557.jpg 768w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/03\/AgEconomyBarometer_Feb2020-1536x1113.jpg 1536w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/03\/AgEconomyBarometer_Feb2020-2048x1485.jpg 2048w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/03\/AgEconomyBarometer_Feb2020-324x235.jpg 324w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-4239\" class=\"wp-caption-text\"><strong>Optimism about current conditions pushes farmer sentiment index to all-time high. <\/strong>(Purdue\/CME Group Ag Economy Barometer\/James Mintert)<\/p><\/div>\n<p>This month\u2019s increase was attributable to an improvement in the <em>Index of Current Conditions<\/em>, which rose 12 points from January to a reading of 154. Meanwhile, the <em>Index of Future Expectations<\/em> fell just 4 points below the record high set in January to a reading of 175. The Ag Economy Barometer is based on a mid-month survey of 400 U.S. agricultural producers which was conducted from February 10-14, 2020.<\/p>\n<p class=\"FORMAT-BODY\">\u201cAlmost across the board, producers indicated they were more optimistic about current conditions on their farms and in U.S. agriculture and retained most of the improvement in future expectations exhibited in January,\u201d said <a href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/team\/jim-mintert\/\">James Mintert<\/a>, the barometer\u2019s principal investigator and director of Purdue University\u2019s Center for Commercial Agriculture. \u201cOptimism about the agricultural trade outlook was underpinned by recent trade agreements and appeared to be the primary driver behind the improvement in sentiment.\u201d<\/p>\n<p>To understand whether USMCA and the China Phase One agreements impacted sentiment, producers were asked if the agreements relieved their concerns about the effect of tariffs on their farms\u2019 income. Over three-fourths (76 percent) of respondents said the agreements either \u201csomewhat\u201d (69 percent) or \u201ccompletely\u201d (7 percent) relieved their concerns, while 17 percent of respondents chose \u201cnot at all\u201d as their response.<\/p>\n<p>Although some voiced concerns about the possible impact of the COVID-19 virus on agricultural trade in mid-February when the survey was conducted, producers remained relatively optimistic about the resumption of trade with China. The percentage of producers expecting the soybean trade dispute to be settled soon, which peaked at 69 percent in January, declined to 61 percent in February; however, it was still the second most positive response since the question was first posed in March of 2019. Producers also remained optimistic that the trade dispute will be resolved in a way that\u2019s favorable to U.S. agriculture, with 80 percent expecting an outcome that is ultimately, positive for U.S. agriculture.<\/p>\n<p>\u201cAs the COVID-19 virus footprint continues to expand, it remains to be seen whether it will impact farmer sentiment at home,\u201d said Mintert.<\/p>\n<p>Expectations for an improvement in farmland values also rose to an all-time high in February. When asked to look ahead five years, 59 percent of producers said they expect farmland values to rise, up from 50 percent in January. This was the most positive response to the question since data collection began in 2015. There was also a somewhat more optimistic outlook with respect to making large farm investments. The <em>Farm Capital Investment <\/em>Index rose from a reading of 68 in January to 72 in February.<\/p>\n<p>The March 16 sign-up deadline for producers to make their program choice under the 2018 Farm Bill is looming. This month\u2019s survey focused on the program choice intentions of producers who grew soybeans in 2019. Four out of 10 (37 percent) said they were still uncertain regarding which program they would choose. Meanwhile, nearly 40 percent of respondents said they planned to choose the ARC-County program, the most popular program under the 2014 Farm Bill, followed by the Price Loss Coverage (PLC) program at 19 percent, and the ARC-Individual Coverage program at 7 percent.<\/p>\n<p>Read the full Ag Economy Barometer report at <a href=\"https:\/\/purdue.ag\/agbarometer\">https:\/\/purdue.ag\/agbarometer<\/a>. This month\u2019s report provides further insight into the impact of trade on producer sentiment. The site also offers additional resources \u2013 such as past reports, charts and survey methodology \u2013 and a form to sign up for monthly barometer email updates and webinars. Each month, the Purdue Center for Commercial Agricultural provides a short video analysis of the barometer results, available at <a href=\"https:\/\/purdue.ag\/barometervideo\">https:\/\/purdue.ag\/barometervideo<\/a>.<\/p>\n<p>The Ag Economy Barometer, Index of Current Conditions and Index of Future Expectations are available on the Bloomberg Terminal under the following ticker symbols: AGECBARO, AGECCURC and AGECFTEX.<\/p>\n<p>&nbsp;<\/p>\n<h2>About the Purdue University Center for Commercial Agriculture<\/h2>\n<p>The <a href=\"https:\/\/ag.purdue.edu\/commercialag\/Pages\/default.aspx\">Center for Commercial Agriculture<\/a> was founded in 2011 to provide professional development and educational programs for farmers. Housed within Purdue University\u2019s Department of Agricultural Economics, the center\u2019s faculty and staff develop and execute research and educational programs that address the different needs of managing in today\u2019s business environment.<\/p>\n<p>&nbsp;<\/p>\n<h2>About CME Group<\/h2>\n<p>As the world\u2019s leading and most diverse derivatives marketplace, CME Group (<a href=\"http:\/\/www.cmegroup.com\/\">www.cmegroup.com<\/a>) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data \u2013 empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/interest-rates\/index.html\">interest rates<\/a>,&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/equity-index\/index.html\">equity indexes<\/a>,&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/fx\/\">foreign exchange<\/a>,&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/energy\/\">energy<\/a>,&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/agricultural\/\">agricultural products<\/a>&nbsp;and&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/metals\/\">metals<\/a>.&nbsp; The company offers futures and options on futures trading through the <a href=\"http:\/\/www.cmegroup.com\/globex\/index.html\">CME Globex<\/a>\u00ae platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world\u2019s leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.<\/p>\n<p>CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.&nbsp;CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.&nbsp;NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.&nbsp;COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&amp;P 500, and S&amp;P are service and\/or trademarks of Dow Jones Trademark Holdings LLC, Standard &amp; Poor\u2019s Financial Services LLC and S&amp;P\/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.&nbsp;All other trademarks are the property of their respective owners.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Writer:<\/strong> Kami Goodwin, 765-494-6999, <a href=\"mailto:kami@purdue.edu\">kami@purdue.edu<\/a><\/p>\n<p><strong>Source:<\/strong> Jim Mintert, 765-494-7004, <a href=\"mailto:jmintert@purdue.edu\">jmintert@purdue.edu<\/a><\/p>\n<p><strong>Media Contacts:<br><\/strong>Aissa Good, Purdue University, 765-496-3884, <a href=\"mailto:aissa@purdue.edu\">aissa@purdue.edu<\/a><br>Matt Stroud, CME Group, 312-561-2269, <a href=\"mailto:matthew.stroud@cmegroup.com\">matthew.stroud@cmegroup.com<\/a><\/p>\n<p><strong>Related website:<br><\/strong>Purdue University Center for Commercial Agriculture: <a href=\"http:\/\/purdue.edu\/commercialag\">http:\/\/purdue.edu\/commercialag <\/a><br>CME Group: <a href=\"http:\/\/www.cmegroup.com\/\">http:\/\/www.cmegroup.com\/<\/a><\/p>\n<p><strong>Photo Caption:<\/strong> Optimism about current conditions pushes farmer sentiment index to all-time high. (Purdue\/CME Group Ag Economy Barometer\/James Mintert)<\/p>\n<p class=\"FORMAT-WRITER\">A publication-quality photo is available at <a href=\"https:\/\/news.uns.purdue.edu\/images\/2020\/feb-barometer.jpg\">https:\/\/news.uns.purdue.edu\/images\/2020\/feb-barometer.jpg<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WEST LAFAYETTE, Ind. and CHICAGO \u2013 Producers\u2019 perception of improved current conditions in the agricultural economy pushed the Purdue University\/CME Group Ag Economy Barometer to all-time record highs. The barometer rose to 168 in February, an increase of one point from January, and was up 18 points since December. This month\u2019s increase was attributable to&hellip;<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[],"class_list":["post-4229","post","type-post","status-publish","format-standard","hentry","category-media"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Optimism about current conditions pushes farmer sentiment index to all-time high<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/optimism-about-current-conditions-pushes-farmer-sentiment-index-to-all-time-high-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Optimism about current conditions pushes farmer sentiment index to all-time high\" \/>\n<meta property=\"og:description\" content=\"WEST LAFAYETTE, Ind. and CHICAGO \u2013 Producers\u2019 perception of improved current conditions in the agricultural economy pushed the Purdue University\/CME Group Ag Economy Barometer to all-time record highs. 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The barometer rose to 168 in February, an increase of one point from January, and was up 18 points since December. 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