All three broad-based measures of farmer sentiment improved in July as the Purdue University/CME Group Ag Economy Barometer index rose 8 points to 113, the Index of Current Conditions increased by 10 points to 100, and the Index of Future Expectations at 119 was 7 points higher than a month earlier.
Farmer sentiment improved in July despite declines in corn and soybean prices from mid-June to mid-July. For example, Eastern Corn Belt cash corn and soybean prices fell 11% and 5%, respectively, over that time frame. Responses to the individual questions used to compute the indices indicate that the sentiment improvement was attributable to fewer respondents reporting worsened conditions compared to a year ago along with a decline in those expecting negative future outcomes. This month’s Ag Economy Barometer survey was conducted from July 15-19, 2024.
The July survey showed that high input costs remained the biggest concern as it was cited as a top concern by 34% of farmers in the survey. Additionally, the risk of lower crop and livestock prices continues to worry producers, with 29% citing it as a top concern, up from 25% in June. Reflecting the signals from the Federal Reserve that interest rates have peaked, only 17% of respondents pointed to rising interest rates as a top concern, down from 23% last month.
