{"id":4602,"date":"2020-09-01T09:30:00","date_gmt":"2020-09-01T13:30:00","guid":{"rendered":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/?p=4602"},"modified":"2020-08-31T12:20:45","modified_gmt":"2020-08-31T16:20:45","slug":"media-farmer-sentiment-rebounds-as-commodity-prices-rally-and-agriculture-trade-prospects-improve","status":"publish","type":"post","link":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-farmer-sentiment-rebounds-as-commodity-prices-rally-and-agriculture-trade-prospects-improve\/","title":{"rendered":"Farmer sentiment rebounds as commodity prices rally and agriculture trade prospects improve"},"content":{"rendered":"\n<p>WEST LAFAYETTE, Ind. and CHICAGO \u2014 There was a big improvement in farmer sentiment in August, according to the <a href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/\">Purdue University\/CME Group Ag Economy Barometer<\/a>. The index rose to a reading of 144, up 26 points from July. The <em>Ag Economy Barometer<\/em> is based on survey responses from 400 U.S. agricultural producers and was conducted between August 17-21, 2020.<\/p>\n<div id=\"attachment_4606\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4606\" class=\"wp-image-4606 size-medium\" src=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/09\/AgEconomyBarometer_Aug2020-300x217.jpg\" alt=\"Farmer sentiment rebounds as commodity prices rally and agriculture trade prospects improve (Purdue\/CME Group Ag Economy Barometer\/James Mintert)\" width=\"300\" height=\"217\" srcset=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/09\/AgEconomyBarometer_Aug2020-300x217.jpg 300w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/09\/AgEconomyBarometer_Aug2020-1024x742.jpg 1024w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/09\/AgEconomyBarometer_Aug2020-768x557.jpg 768w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/09\/AgEconomyBarometer_Aug2020-1536x1113.jpg 1536w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/09\/AgEconomyBarometer_Aug2020-2048x1485.jpg 2048w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/09\/AgEconomyBarometer_Aug2020-324x235.jpg 324w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-4606\" class=\"wp-caption-text\"><strong>Farmer sentiment rebounds as commodity prices rally and agriculture trade prospects improve<\/strong> (Purdue\/CME Group Ag Economy Barometer\/James Mintert)<\/p><\/div>\n<p>Both of the barometers sub-indices also recorded substantial increases. The <em>Index of Current Conditions<\/em> improved to a reading of 124, up 13 points from July, while the <em>Index of Future Expectations <\/em>improved to a reading of 154, up 33 points.<\/p>\n<p>Increases in the barometer and its two sub-indices marked the most positive readings since February 2020 when record highs were established and before the pandemic began. The improvement in sentiment was also underpinned by expectations for excellent crop yields, as reported in the USDA\u2019s August <em>Crop Production<\/em> report, and rallies in key agriculture commodity prices that took place this month.<\/p>\n<p>\u201cThis month marked a considerable increase in farmer sentiment,\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. \u201cWith a positive crop production outlook, rebounding commodity prices, and news of additional export sales to China, producers were much more optimistic about the future for the U.S. agricultural economy.\u201d<\/p>\n<p>Farmers were more optimistic about U.S. agriculture\u2019s trade prospects compared to the past several months. In August, 67 percent of producers said they expect exports to rise over the next five years, compared to just 57 percent who felt the same way during the spring and summer months of 2020. Mintert attributed this change in perspective in part to rising export sales to China that began over the summer and now appear likely to continue into fall.<\/p>\n<p>Farmers\u2019 perspectives toward land values also improved in August. Those expecting land values to increase over the next 12 months rose to 20 percent in August, up from 16 percent in July and 7 percent back in April. The percentage of producers expecting values to increase in the next five years rose to 59 percent, up from 48 percent in July and just 40 percent who expected higher values back in May.<\/p>\n<p>Each summer survey respondents are asked their opinion regarding changes in farmers\u2019 equity position over the upcoming year. The percentage of respondents in the August 2020 survey who expect equity to decline in the upcoming 12 months was 38 percent. This marked the second lowest percentage since the survey question was first asked in 2016 and was well below a year earlier when 48 percent of respondents said they expected farmers\u2019 equity to decline.<\/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 includes insight into farmers\u2019 intentions towards investing in farm machinery in the coming year and their thoughts on attending virtual events like field days and conferences this fall and winter. 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.<\/p>\n<p>Each month, the Purdue Center for Commercial Agriculture provides a short video analysis of the barometer results, available at\u00a0<a href=\"https:\/\/purdue.ag\/barometervideo\">https:\/\/purdue.ag\/barometervideo<\/a>, and for even more information, check out the\u00a0<em>Purdue Commercial AgCast<\/em>\u00a0podcast. It includes a detailed breakdown of each month\u2019s barometer, in addition to a discussion of recent agricultural news that impacts farmers. Available now at\u00a0<a href=\"https:\/\/purdue.ag\/agcast\">https:\/\/purdue.ag\/agcast<\/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>\u00a0<\/p>\n<h2>About the Purdue University Center for Commercial Agriculture<\/h2>\n<p class=\"FORMAT-BODY\">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>\u00a0<\/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\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/interest-rates\/index.html\">interest rates<\/a>,\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/equity-index\/index.html\">equity indexes<\/a>,\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/fx\/\">foreign exchange<\/a>,\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/energy\/\">energy<\/a>,\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/agricultural\/\">agricultural products<\/a>\u00a0and\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/metals\/\">metals<\/a>.\u00a0 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.\u00a0CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.\u00a0NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.\u00a0COMEX 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.\u00a0All other trademarks are the property of their respective owners.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Writer:<\/strong> Kami Goodwin, 765-494-6999, <a href=\"mailto:kami@purdue.edu\">kami@purdue.edu<\/a><br \/><strong>Source:<\/strong> James 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 \/>Dana Schmidt, CME Group, 312-872-5443,\u00a0<a href=\"mailto:dana.schmidt@cmegroup.com\">dana.schmidt@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><\/p>\n<p>Farmer sentiment rebounds as commodity prices rally and agriculture trade prospects improve (Purdue\/CME Group Ag Economy Barometer\/James Mintert)<\/p>\n<p class=\"FORMAT-WRITER\">A publication-quality photo is available at <a href=\"https:\/\/www.purdue.edu\/uns\/images\/2020\/mintert-augustbarometerLO.jpg\">https:\/\/www.purdue.edu\/uns\/images\/2020\/mintert-augustbarometerLO.jpg<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WEST LAFAYETTE, Ind. and CHICAGO \u2014 There was a big improvement in farmer sentiment in August, according to the Purdue University\/CME Group Ag Economy Barometer. The index rose to a reading of 144, up 26 points from July. The Ag Economy Barometer is based on survey responses from 400 U.S. agricultural producers and was conducted&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-4602","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>Farmer sentiment rebounds as commodity prices rally and agriculture trade prospects improve<\/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\/media-farmer-sentiment-rebounds-as-commodity-prices-rally-and-agriculture-trade-prospects-improve\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Farmer sentiment rebounds as commodity prices rally and agriculture trade prospects improve\" \/>\n<meta property=\"og:description\" content=\"WEST LAFAYETTE, Ind. and CHICAGO \u2014 There was a big improvement in farmer sentiment in August, according to the Purdue University\/CME Group Ag Economy Barometer. 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The Ag Economy Barometer is based on survey responses from 400 U.S. agricultural producers and was conducted&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-farmer-sentiment-rebounds-as-commodity-prices-rally-and-agriculture-trade-prospects-improve\/\" \/>\n<meta property=\"og:site_name\" content=\"Ag Economy Barometer\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/purdueagribusiness\/?fref=ts\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-01T13:30:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/09\/AgEconomyBarometer_Aug2020-300x217.jpg\" \/>\n<meta name=\"author\" content=\"Sarah E Zahn\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@PUCommercialAg\" \/>\n<meta name=\"twitter:site\" 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