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Producer sentiment is up following second round of MFP payments

The second round of Market Facilitation Program payments and the passage of the farm bill contributed to a rise in producer sentiment last month.

Purdue University’s Jim Mintert says the latest Ag Economy Barometer provided the first opportunity to measure sentiment since the two announcements.

“That’s consistent with the idea that producers are really feeling better about where things are at today on their farm,” he says.

The latest barometer is up 16 points to 143. Mintert tells Brownfield farmers also indicated they are more likely to make large investments – like machinery or buildings – on their operation. 

“I think that reflects the fact that the situation improved quite a bit at the end of 2018 and then when you look at what’s taking place now people are starting to look ahead and think about what the rest of 2019 will look like and they’re cautiously optimistic is how I would put it,” he says.

The Purdue University/CME Group Ag Economy Barometer is a monthly national survey of 400 U.S. ag producers.

Fifty-three percent of farmers surveyed grow corn or soybeans, 19 percent raise beef, 14 percent grow wheat, six percent raise hogs, 5 percent are dairy farmers, and 3 percent grow cotton.

Audio: Jim Mintert, Purdue University