Agricultural producer sentiment held steady for the third month in a row, according to the Purdue University/CME Group Ag Economy Barometer, released on Wednesday. The barometer slightly rose between the May and June surveys. Overall, sentiment remains well over levels recorded prior to November 2016.
Most ag producers (60%) reported feeling better about their farm operations’ finances now than they did a year ago. That being said, 28% expect their financial outcome to be worse than their projections earlier this year. Extreme weather that delayed planting and impacted ideal growing conditions is to blame for their concerns — particularly for those in the Corn Belt. In April, excessive rainfall stalled corn planting for Midwest farmers.
Compared to the results of previous surveys, most producers (52%) now expect adverse impacts on crop yields over the next 12 months. When it comes to business, the majority of ag producers (70%) expect taxes to either stay the same or decline over the next 12 months, possibly contributing to the increasing optimism since October 2016.
Regardless of planting delays and lower expected revenue, ag producers still feel more optimistic compared to October 2015, when the survey began.