WEST LAFAYETTE, Ind. and
CHICAGO, Dec. 5, 2017 /PRNewswire/ -- Producers
expressed lower sentiment toward the agricultural economy in
November on the heels of fall harvest, according to the
Purdue University/CME Group Ag Economy
Barometer.
The November barometer read 128, a 7-point decline from
October's 135 and the second-lowest reading of 2017. The barometer
is based on a monthly survey of 400 agricultural producers from
across the country.
"The November slide in sentiment was primarily driven by reduced
optimism about the future," said James
Mintert, the barometer's principal investigator and director
of Purdue University's Center for
Commercial Agriculture. "We saw the Index of Future Expectations
fall by 10 points, while the barometer's other sub-index, the Index
of Current Conditions, held steady at 129."
In one of the survey questions, producers were asked whether
they thought the next 12 months would be good times or bad times
financially for the agricultural economy as a whole. Sixty-two
percent said they thought the next 12 months will be bad times
financially in U.S. agriculture. The percentage of producers
expecting bad times in agriculture has been increasing since July
when 50 percent of survey respondents said they were expecting bad
times.
Throughout 2017, survey respondents have been asked about
agricultural trade in an effort to understand how proposed policy
changes might be impacting producer sentiment. When asked about the
importance of agricultural exports to the overall U.S. agricultural
economy, 96 percent rated them as important.
The survey also asked producers about the North American Free
Trade Agreement (NAFTA).
"When we asked producers about NAFTA specifically, they were
less confident about its importance to the U.S. agricultural
economy," Mintert said. "While 70 percent did rate it as important,
a substantial 20 percent rated NAFTA as neutral, meaning neither
important or unimportant."
On a regular basis, the survey asks respondents about their
expectations for farmland prices. For the first time in survey
history, more producers said they expect higher farmland values
than lower farmland values. Twenty-one percent said they expect
farmland values to turn higher in the next 12 months, whereas 62
percent thought values would remain unchanged and 17 percent expect
lower farmland values.
Read the full November report at http://purdue.edu/agbarometer.
This month's report includes additional information both
sub-indices, farmland values and trade.
The Ag Economy Barometer, Index of Current Conditions and Index
of Future Expectations are available on the Bloomberg Terminal
under the following ticker symbols: AGECBARO, AGECCURC and
AGECFTEX.
About the Purdue University
Center for Commercial Agriculture
The Center for Commercial
Agriculture was founded in 2011 to provide professional development
and educational programs for farmers. Housed within Purdue University's Department of Agricultural
Economics, the center's faculty and staff develop and execute
research and educational programs that address the different needs
of managing in today's business environment.
About CME Group
As the world's leading and most
diverse derivatives marketplace, CME Group (www.cmegroup.com) is
where the world comes to manage risk. Through its exchanges, CME
Group offers the widest range of global benchmark products across
all major asset classes, including futures and options based on
interest rates, equity indexes, foreign exchange, energy,
agricultural products and metals. CME Group provides electronic
trading globally on its CME Globex platform. The company also
offers clearing and settlement services across asset classes for
exchange-traded and over-the-counter derivatives through its
clearinghouses CME Clearing and CME Clearing Europe. CME Group's
products and services ensure that businesses around the world can
effectively manage risk and achieve growth.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
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Inc. CBOT, Chicago Board of Trade,
KCBT and Kansas City Board of
Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
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Related website:
Purdue
University Center for Commercial Agriculture:
http://purdue.edu/commercialag
CME Group: http://www.cmegroup.com/
Photo Caption:
The Ag Economy Barometer fell to 128 in
November in what appears to be a post-harvest slump. This is the
barometer's second-lowest reading in 2017. (Purdue/CME Group Ag Economy Barometer/David Widmar)
A publication quality photo is available at:
https://news.uns.purdue.edu/images/2017/mintert-november.jpg
Note to journalists: The December Ag Economy Barometer Report
will publish on Tuesday, January 9,
2018, due to Purdue University's
winter recess. Download the full reports schedule.
CME-G
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SOURCE CME Group