{"id":4660,"date":"2020-10-06T09:30:00","date_gmt":"2020-10-06T13:30:00","guid":{"rendered":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/?p=4660"},"modified":"2020-10-05T15:20:47","modified_gmt":"2020-10-05T19:20:47","slug":"media-ag-barometer-rises-as-crop-prices-rally-and-usda-announces-cfap-2","status":"publish","type":"post","link":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-ag-barometer-rises-as-crop-prices-rally-and-usda-announces-cfap-2\/","title":{"rendered":"Ag Barometer rises as crop prices rally and USDA announces CFAP 2"},"content":{"rendered":"\n<p>WEST LAFAYETTE, Ind. and CHICAGO \u2014 Farmer sentiment hit a post pandemic high in September, 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 156, up 12 points from August and up 60 points from its 2020 low in April. The <em>Current Conditions Index <\/em>also saw an uptick, jumping 18 points to a reading of 142 in September, and the <em>Future Expectations Index<\/em> rose 9 points to a reading of 163. The <em>Ag Economy Barometer<\/em> is based on survey responses from 400 U.S. agricultural producers and was conducted between September 21-25, 2020.<\/p>\n<div id=\"attachment_4662\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4662\" class=\"wp-image-4662 size-medium\" src=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/10\/AgEconomyBarometer_Sept2020-300x217.jpg\" alt=\"Ag Barometer rises as crop prices rally and USDA announces CFAP 2 (Purdue\/CME Group Ag Economy Barometer\/James Mintert) \" width=\"300\" height=\"217\" srcset=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/10\/AgEconomyBarometer_Sept2020-300x217.jpg 300w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/10\/AgEconomyBarometer_Sept2020-1024x742.jpg 1024w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/10\/AgEconomyBarometer_Sept2020-768x557.jpg 768w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/10\/AgEconomyBarometer_Sept2020-1536x1113.jpg 1536w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/10\/AgEconomyBarometer_Sept2020-2048x1485.jpg 2048w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/10\/AgEconomyBarometer_Sept2020-324x235.jpg 324w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-4662\" class=\"wp-caption-text\"><strong>Ag Barometer rises as crop prices rally and USDA announces CFAP 2<\/strong> (Purdue\/CME Group Ag Economy Barometer\/James Mintert)<\/p><\/div>\n<p>This past month marked key changes in the agricultural economy. On September 18, USDA announced a second round of Coronavirus Food Assistance Program (CFAP 2) payments for U.S. agricultural producers and fall-harvested crop prices continued to strengthen considerably since late summer.<\/p>\n<p>\u201cIn September, producers were more optimistic about both current conditions and the future for agriculture than they\u2019ve been since the pandemic began,\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. \u201cA continued crop price rally and the announcement of USDA\u2019s Coronavirus Food Assistance Program (CFAP 2) payments appear to be fueling much of their optimism.\u201d<\/p>\n<p class=\"FORMAT-BODY\">However, that optimism did not completely carry over into perspectives toward the future of U.S. agriculture\u2019s trade prospects. In September, 58 percent of respondents said they expect agriculture exports to increase over the next 5 years, down from 67 percent who felt that way in August. The shift was primarily due to more producers indicating they expect exports to remain about the same in the future, rather than increase. In a related question, producers were asked whether they expect China to fulfill the food and agricultural import requirements established in the Phase One trade agreement signed earlier this year. Farmers\u2019 opinions were split, with less than half (47%) of respondents indicating they expect China to fulfill its commitment to import food and ag products from the U.S.<\/p>\n<p>Given its increased attention in recent years, this month, producers were asked several questions about their intentions to use fall cover crops. Nearly 4 out of 10 corn\/soybean producers in the September survey said they intend to plant at least some cover crops in fall 2020. As for their acreage intentions, over half (52%) said that they planned to plant cover crops on one-third or less of their corn\/soybean acreage, 21% said they intend to plant between one-third to as much as two-thirds, and 27% intend to plant cover crops on more than two-thirds. Farmers who intend to plant cover crops this fall overwhelmingly (79%) said their primary reason for doing so was to improve soil health and crop yields, while just 1% of respondents said it was because of the availability of cost-share funds.<\/p>\n<p>With many educational events and programs transitioning to online delivery, this month farmers were asked whether they have attended an online program and, if so, what aspects they liked and disliked. Twenty-two percent of respondents to the September survey said they attended an online educational program or field day this year. Respondents said they liked the flexible timing of attending and viewing the programs (27%) and the ability to choose topics of interest (21%). However, respondents overwhelmingly pointed to the lack of interaction with other attendees (40%), poor broadband connection (18%), and difficulty in asking questions (17%) as the top reasons they disliked these programs<\/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 making large investments in their farming operations in the coming year. 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 class=\"FORMAT-BODY\">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>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>Ag Barometer rises as crop prices rally and USDA announces CFAP 2<b> <\/b>(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\/barometer-septemberLO.jpg\">https:\/\/www.purdue.edu\/uns\/images\/2020\/barometer-septemberLO.jpg<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WEST LAFAYETTE, Ind. and CHICAGO \u2014 Farmer sentiment hit a post pandemic high in September, according to the Purdue University\/CME Group Ag Economy Barometer. The index rose to a reading of 156, up 12 points from August and up 60 points from its 2020 low in April. The Current Conditions Index also saw an uptick,&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-4660","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>Ag Barometer rises as crop prices rally and USDA announces CFAP 2<\/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-ag-barometer-rises-as-crop-prices-rally-and-usda-announces-cfap-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ag Barometer rises as crop prices rally and USDA announces CFAP 2\" \/>\n<meta property=\"og:description\" content=\"WEST LAFAYETTE, Ind. and CHICAGO \u2014 Farmer sentiment hit a post pandemic high in September, according to the Purdue University\/CME Group Ag Economy Barometer. The index rose to a reading of 156, up 12 points from August and up 60 points from its 2020 low in April. The Current Conditions Index also saw an uptick,&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-ag-barometer-rises-as-crop-prices-rally-and-usda-announces-cfap-2\/\" \/>\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=\"2020-10-06T13:30:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2020\/10\/AgEconomyBarometer_Sept2020-300x217.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\" content=\"@PUCommercialAg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta 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