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Producer sentiment about the future wanes in September

An ag economist says producer sentiment about the future of the ag economy fell in September.

David Widmar says the Purdue University/CME Group Ag Economy Barometer’s index of future expectations fell seven points to 130.

He says the increase in expectations of the economy around the time of the presidential election is staring to fade.

“We asked if producer thought the US economy would be more likely to expand or contract over the next 12 months,” he says. “Back in March 60 percent told us they thought an expansion was likely, today that’s down to 40 percent.”

He tells Brownfield overall sentiment has remained positive. The overall barometer held steady at 132 and the index of current conditions climbed to 135.

Widmar says new to the survey this month was a question about how trade agreements, like NAFTA, could impact the ag economy.

“Sixty percent of respondents told us that NAFTA was good and had been good for US farmers and ranchers,” he says.

The Ag Economy Barometer is based on a monthly survey of 400 U.S. agricultural producers. A rating below 100 is negative, while a rating above 100 indicates positive feelings about the ag economy.

Audio: David Widmar, Purdue University