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Farmers less optimistic about trade despite recent China purchases

Farmers are less optimistic about the trade outlook despite export sales to China rising in recent weeks, according to the Purdue University/CME Group Ag Economy Barometer.

Purdue University’s Jim Mintert says the latest survey asked farmers whether they expect China to fulfill food and ag import requirements.

“It turned out to be kind of a toss-up,” he says. “Fifty three percent of the people in the survey said they thought it was unlikely that China would fulfill its phase one agreement requirements and 47 percent said likely.”

He tells Brownfield the results were somewhat surprising because China has ramped up purchases.

“But, I think it reveals maybe a little bit of skepticism about the long-run relationship with China in terms of increasing trade and increasing exports,” he says.

The Ag Economy Barometer is a monthly national survey of 400 US ag producers.

Audio: Jim Mintert