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Producer sentiment holds steady for May

A new survey shows producer sentiment of the ag economy was stead from April to May.

Purdue ag economist David Widmar says producers continue to be optimistic about both future and current economic conditions.

He tells Brownfield the most recent Purdue/CME Group Ag Economy Barometer held steady at 130 overall.

“But, that index of current conditions – which is kind of a look at today and the next twelve months – saw that specific measure lose ten pointes,” he says.  “While the index of future expectations – that long run measure of optimism actually trended higher.”

For the first time the survey asked farmers to project where farmland values would be in the next 5 years.  Widmar says optimism about the future also lent support for producer sentiment about farmland values.  “Eight out of ten farmers think that their farmland will be worth about the same or more in five years,” he says.  “That’s a pretty important underpinning and a pretty strong measure of how producers feel optimistic about the ag economy and a big portion of their wealth.”

AUDIO: David Widmar, Purdue University