Inside INdiana Business is reporting there was a big improvement in farmer sentiment in August, according to the Purdue University/CME Group Ag Economy Barometer. The index rose to a reading of 144, up 26 points from July.
Both of the barometer’s sub-indices also recorded substantial increases. The Index of Current Conditions improved to a reading of 124, up 13 points from July, while the Index of Future Expectations improved to a reading of 154, up 33 points.
Purdue’s Center for Commercial Agriculture says the increases in the three categories marked the most positive readings since February 2020 when record highs were established and before the pandemic began.
The improvement in sentiment was underpinned by expectations for excellent crop yields, as reported in the USDA’s August Crop Production report, and rallies in key agriculture commodity prices that took place this month amidst news of additional export sales to China.
The Ag Economy Barometer is based on survey responses from 400 U.S. agricultural producers.