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Farmer sentiment improves despite planting delays

Farmer sentiment improved this month despite planting delays across much of the Midwest.

Jim Mintert, director of Purdue’s Center for Commercial Agriculture, says the latest Purdue University/CME Group Ag Economy Barometer captured reaction to the second round of trade mitigation payments.

“In late May the USDA announced the market facilitation program payments would be available here again in 2019,” he says. “And then of course in the middle of this was all the prevented planting issues, but the concerns about that actually gave us a boost in commodity prices and I think that factored into the improvement in sentiment as well.”

The survey also looked at the impact of prevented planting claims.

Mintert tells Brownfield 32 percent of farmers surveyed expect to take a Federal Crop Insurance prevented planting payment on corn acreage this year.

“Of those producers, 51 percent said that they would put in more than 15 percent of their intended corn acreage and 15 percent said they would put 10-15 percent,” he says.

Producers were also asked if their planting intentions were swayed by USDA’s announcement that MFP payments would not include prevented planting acres.

“On the soybean side, about 11 percent said it impacted their planting decisions and we had a little more on the corn side,” he says.  

Farmers indicated they are still cautious about making large investments in their farming operation but are somewhat more optimistic that the trade dispute with China will be resolved soon.

The latest barometer, a monthly survey of 400 U.S. ag producers, rebounded to 126, up 25 points from May. The Index of Future Expectations was up 33 points and the Index of Current Conditions was up 13 points.

Audio: Jim Mintert, Purdue University

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