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Sentiment might be higher, but the ag economy isn’t in the clear

An ag economist says despite the big bump in latest Purdue/CME Group Ag Economy Barometer the ag industry is still in pretty tough times.

Purdue University’s David Widmar says it is an improvement in sentiment.  “By no means an all-clear that the ag economy is doing better,” he says, “it’s just an improvement.”

He says there is a disconnect between the current ag economy and how producers feel about the future ag environment.  “We’re definitely trying to drill down and put our finger on what fundamental support producers are looking to when they think about that future optimism,” he says.

And, he tells Brownfield there are distinct differences in sentiment between the livestock and crop sectors.  “What we saw most recently is that there is more optimism towards livestock agriculture than there is crop agriculture,” he says.  “And that’s been the case for most months of our survey.”

Widmar says one of the other factors tied to the increase in producer sentiment is the post-election confidence in the US economy.

AUDIO: David Widmar, Purdue University